Sep 20, 2018

2018/19 Soybean Planting in Parana off to a very Fast Start

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

Farmers in the state of Parana are off to a fast start in planting their 2018/19 soybean crop. According to the Department of Rural Economics (Deral), as of last Monday, September 17, soybean planting in the state was 9% compared to 1% at the same time last year. This is the earliest planting pace for soybeans in the state in at least the last five years. Soybean planting activity is most active in the western parts of the state.

Some of the earliest planted soybeans will be ready for harvest about the first week of January. In fact, I would not be surprised to hear of some soybeans being harvested before the end of December. As a result, the first exports of new crop soybeans from Brazil should occur about the last week of January.

There is already a strong premium for Brazilian soybeans due to the heightened demand from China and the premiums might even move higher if China resists purchasing U.S. soybeans due to ongoing trade disputes. Additionally, Brazil has been exporting soybeans at a very fast pace and the country could actually be close to running out of soybeans before the new crop starts to become available in January. If that turns out to be the case, then there would also be premiums offered by local crushers for the first new crop soybeans.

In addition to the financial incentive to plant their soybeans as quickly as possible, there is also an agronomic incentive. The early harvest of soybeans also means farmers will be able to plant their safrinha corn early as well. The 2017/18 safrinha corn crop in Parana ended up being very disappointing due in part to the delayed soybean harvest and subsequent delayed safrinha corn planting.

Farmers in Parana are also actively harvesting their winter wheat and Deral reported that 11% of the wheat has been harvested and that 50% of the wheat is mature. All of the wheat in Parana will be followed by soybeans immediately after the wheat is harvested. Parana is the second largest soybean producing state in Brazil after Mato Grosso.

There continues to be adequate soil moisture for germination and stand establishment in contrast to last year when the first significant rain in the state did not occur until September 28th.