Jan 12, 2018

Brazil's Soybean Harvest Delayed 10-15 Days compared to last year

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

Brazilian farmers are preparing to start harvesting their 2017/18 soybean crop, but according to the Secretary General of the Brazilian Vegetable Oil Processors Association (Abiove), the Brazilian soybean harvest is estimated to be 10-15 days later this year compared to last year. The delayed start to the harvest is the result of dry weather last September and early October that delayed the soybean planting. Heavy rains in central and southeastern Brazil in recent weeks have also delayed early harvest activity and increased concerns about soybean rust.

Reuters reported that the Secretary General made these comments at an event being held in Brasilia that is evaluating the effectiveness of a moratorium on soybeans that are produced on illegally cleared land in the Amazon Region.

In a recent survey conducted by Reuters of more than a dozen crop analysts in Brazil, the country is expected to produce 110 million tons of soybeans in 2017/18, which would be the second highest in history only surpassed by last year when Brazil produced 114 million tons. Abiove is estimating that Brazil will export 65 million tons of soybeans in 2018 compared to 68 million tons in 2018.

The soybean moratorium is a collective effort of environmentalists, producers, grain companies, grain processors, and government organizations whose goal is to reduce pressutre to deforest land in the Amazon Region in order to increase grain production. The companies involved have agreed not to finance or purchase grain produced in areas that were illegally cleared after 2008. Thus far, the moratorium has been deemed a success and the original agreement was recently renewed.