Jan 07, 2022

Brazil's Soybean Exports May Not Start as Early as Expected

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

The 2021/22 soybeans in Brazil were planted very quickly last September and October and exporters had been hoping for a quick start to soybean exports as well, but that may now be in doubt. There are approximately 3 million tons in the soybean lineup for January at Brazilian ports, but as of now, there are not enough soybeans to start loading vessels.

Soybeans produced in the state of Parana are usually the first to arrive at the Port of Paranagua because they are harvested just a few hundred kilometers away in the western part of the state. Unfortunately, western Parana is under extreme drought and the early soybean yields are very disappointing and of poor quality.

The early soybeans in Parana matured about 20 days earlier than anticipated due to drought with yields are in the range of 6 to 25 sacks per hectare (5 to 22 bu/ac). Some of the worst fields were not even harvested, but instead mowed down so they could plant a safrinha corn crop.

The Department of Rural Economics for the state of Parana (Deral) originally estimated that the state would produce 21 million tons of soybeans in 2021/22. That was lowered to 18.4 million in December and it was lowered again in January to 13 million tons. The director of Deral also indicated that it could move even lower.

The other big soybean producing state that is an early exporter of soybeans is Mato Grosso, but heavy rains and wet conditions have slowed the early soybean harvest in the state. Additionally, the earliest harvested soybeans in Mato Grosso are located approximately 2,000 kilometers from ports in southern Brazil and on the Amazon River, so it can take several weeks for those soybeans to make their way to the ports.