Mar 17, 2022

Farmers in Mato Grosso Have Sold 61% of Their 2021/22 Soybeans

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

The 2021/22 soybean harvest in Mato Grosso is essentially complete and farmers in the state have sold 61% of their soybeans compared to 75% last year and 67% average according to the Mato Grosso Institute of Agricultural Economics (Imea). This represents an advance of 6% compared to the prior month.

For the 2022/23 soybeans that farmers in the state will plant starting in September, they have forward contracted 16.2% of their anticipated production compared to 23.5% last year and 9.2% average. This represents an advance of 4% from the prior month.

Farmers are reluctant to forward contact too much of their 2022/23 soybean crop due to high input costs and the uncertainty surrounding fertilizer prices and availability. The war between Russia and Ukraine has thrown the fertilizer market into disarray because Russia and Belarus are significant suppliers of fertilizers and it is uncertain how much of their fertilizers will be exported. Imported fertilizers account for 85% of the fertilizers used in Brazil.

For the 2021/22 corn production, farmers in the state have forward contracted 50.7% of their anticipated production compared to 70.8% last year and 54.7% average.

For the 2022/23 corn crop that farmers will plant early next year, they have forward contracted 6.5% of the anticipated production compared to 12.6% last year and 5.5% average.