Oct 05, 2018

Soy Farmers in Mato Grosso do Sul are Planting Fast and Selling Fast

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

Soybean farmers in Mato Grosso do Sul are in the process of planting their 2018/19 soybean crop and also forward contracting their anticipated production. As of late last week, the Soybean & Corn Producers Association of Mato Grosso do Sul (Aprosoja/MS) estimated that farmers had planted 4.5% of their intended soybeans compared to 2.6% last year at this time. Planting in the southern part of the state was most advanced while planting in the northern part of the state was the slowest.

Aprosoja is estimating that farmers in the state will increase their soybean acreage by 4.9% in 2018/19 to 2.84 million hectares (7.0 million acres). The soybean production in 2018/19 is expected to increase 4.6% to 10.05 million tons. They are estimating that the statewide soybean yield in 2018/19 will average 59 sacks per hectare (52.3 bu/ac).

Farmers in the state have forward contracted 25.5% of their anticipated soybean production compared to 13.9% forward contracted last year at this time. The average price of the forward contracts thus far has been R$ 84.00 per sack (approximately $9.55 per bushel). It is estimated that farmers have sold 88% of last year's soybean crop.

The vast majority of the corn produced in the state is safrinha production planted after the soybeans are harvested. Farmers have harvested 100% of their 2017/18 safrinha corn and they have sold 52% of the crop. The 2017/18 corn production in the state was very disappointing. A period of nearly 50 days without rain resulted in a 25% yield decline. The average yield for the 2017/18 crop is estimated at 70.1 sacks per hectare (64.7 bu/ac), which was a huge decline from the 2016/17 crop that yielded 98.3 sacks per hectare (90.8 bu/ac).

Farmers will plant their 2018/19 safrinha corn crop in February and March and the acreage is expected to remain unchanged at 1.8 million hectares (4.4 million acres). Farmers have forward contracted 12% of their anticipated 2018/19 corn production.