Nov 09, 2023
Brazilian Farmers Have Sold 24% of Their 2023/24 Soybeans
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Brazilian farmers have forward contracted 24.2% of their anticipated 2023/24 soybean production compared to 20.6% last year and 34.5% average according to the consulting firm Safras & Mercado. Farmers are not in a hurry to sell their soybeans due to low prices and the fact that they are well capitalized after last year's record production.
The 2023/24 soybean crop was 50% planted as of late last week compared to 64% last year and 59% average. Hot and dry conditions in east-central and northeastern Brazil have slowed the planting progress as well as saturated conditions in far southern Brazil.
As far as the 2022/23 soybean crop is concerned, farmers have sold 89.5% of the crop compared to 89.2% last year and 94.2% average. This represents an advance of 4.6% compared to last month.
For the 2022/23 safrinha corn that was harvested over the past 4-5 months, the crop is 71% sold compared to 69% last year and 74.7% average.
Brazilian farmers will plant their 2023/24 safrinha corn crop next January-February-March and they are concerned that the delayed soybean planting will delay the planting of the safrinha corn. Additionally, farmers are concerned that the summer rainy season may end earlier than normal due to El Nino, which would increase the risk of low yields for any late-planted corn.