Feb 16, 2017
Farmers in Mato Grosso Increase Selling of their Soybeans
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
According to the Mato Grosso Institute of Agricultural Economics (Imea) the farmers in Mato Grosso wrapped up the sale of their 2015/16 soybean crop in January and they are now focused on new crop sales.
The sales of the 2016/17 soybean crop increased 8% in January and it now stands at 56%, which is 3% slower than last year at this time. Farmers in Mato Grosso usually increase their sales of new crop soybeans in January as they start to harvest soybeans and become more confident concerning their soybean yields.
Domestic soybean prices in the state averaged R$ 62.82 per sack in January or about $9.20 per bushel, which is down from December prices. Prices during the first half of February have declined some more due to harvest pressure and a strengthening Brazilian currency. The Brazilian real has reached multi month highs and is currently trading at approximately 3.06 per dollar. A stronger Brazilian currency generally results in lower domestic grain prices.
Farmer sales are expected to pick up more as the harvest progresses, but after the harvest is complete, Brazilian farmers are expected to hold tight to some of their soybeans, at least until there is a better indication concerning the 2017 soybean crop in the United States. It has generally been advantageous for Brazilian farmers to hold onto some of their soybeans in the hope that a weather scare in the United States could improve soybean prices.