Sep 01, 2021

Brazilian Farmers Tapping into Available Credit at Rapid Pace

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

The Brazilian Minister of Agriculture reported last Friday that during the month of July, which was the first month that credit from the 2021/22 Harvest Plan was available, Brazilian farmers had already secured R$ 27 billion in credit, which was up 16% compared to July of 2020. During July, farmers received R$ 6.8 billion for investments, which was 9% of the R$ 73.4 billion allotted for the entire year.

Farmers in Brazil are anxious to get in the field and plant their 2021/22 crops as early as the weather permits to hopefully secure good yields and take advantage of strong domestic crop prices. Planting their soybeans as early as possible would also give them the opportunity to plant the safrinha corn during the ideal planting window which generally closes at the end of February.

Spot Prices for Grain in Mato Grosso - The Mato Grosso Institute of Agricultural Economics (Imea) reported that the spot price for corn in the state last week was R$ 79.13 per sack (approximately $6.92 per bushel). The spot price for soybeans in the state last week was R$ 167.81 per sack (approximately $14.95 per bushel).