Dec 13, 2021
Brazilian Farmers Have Sold 30.4% of their 2021/22 Soy Production
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazilian soybean farmers have been slow to forward contract their anticipated 2021/22 soybean production. According to Flavio Franca Junior, Grain Analysts for DATAGRO, farmers have forward contracted 30.4% of their anticipated 2021/22 soybean production compared to 56.3% last year and 36.1% average. This represents an advance of only 2.2% during the month of November.
Farmers are reluctant to forward contract their soybeans because they remember last year when they sold too much of their crop early in the growing season only to see soybean prices double by the time the crop was harvested.
For last year's soybean crop that was harvested earlier in 2021, farmers have sold 94.5% of their production compared to 99.3% the prior year and 95.2% average. This represented an advance of 1.7% for the month of November.
For the 2020/21 safrinha corn that was harvested in mid-2021, Brazilian farmers have sold 87.8% of the crop compared to 90.6% the prior year and 86.3 average. This represents an advance of 2.8% for the month of November. For last year's first corn crop that was harvested earlier in 2021, farmers have sold 95.5% of the crop compared to 98.4% the prior year and 94.5% average. This represents an advance of 1.7% for the month of November.