Oct 13, 2023

Beneficial Weather Spurs Soy Planting in Parana, Surpasses 30%

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

The weather in Brazil thus far this early growing season has been a tale of two extremes. Southern Brazil has been inundated with torrential rain while northern Brazil including much of the Amazon region is experiencing an extended drought. In between the two regions is the state of Parana where the weather has been advantageous for soybean planting.

Soybean planting in Parana surpassed 31% this week, which is one of fastest planting paces in recent years according to the Department of Rural Economics (Deral). Farmers in the state are expected to plant 5.8 million hectares of soybeans in 2023/24 (14.3 million acres).

If the weather cooperates for the remaining of the growing season, the state is expected to produce 21.9 million tons of soybeans, which is just slightly less than the record of 22 million tons produced last year. Analysts for Deral speculate that production could be as high as 23 million tons if the weather continues to be beneficial.

Current soybean prices in the state are R$ 123.00 per sack (approximately $11.20 per bushel), which is down 25% from last year at this time. Fortunately for the farmers, the cost of production has declined 30% compared to last year, which should result in positive margins for producers.

Parana is the second largest soybean and corn producing state in Brazil after Mato Grosso. Soybean planting should be completed by December. Most of the corn in the state is grown as a second crop after soybeans and the safrinha corn will be planted in January and February.