Soy Harvest Heating up in Brazil


Soybean harvest in Parana, Brazil’s 2nd largest soy producing state, reached 25% according to Deral, well ahead of last season.

Although the state suffered through a mini drought in December, early yield results show no material losses.

Only 6 percent of the state's soy fields are in bad condition, compared to none last year, Deral said. Another 24 percent are considered "average," compared to 14 percent in the previous cycle. The remaining fields are considered in good condition.

What it means for the farmer? The weather issues in Brazil are not widespread nor significant enough to put a major dent in production. Yes, Brazil’s crop will be off from record high estimates of 122 MMT. But unless we start to see enough issues that get the crop under 110 MMT it will be difficult for the market to take the threat as price enhancing. Keep in mind Argentina is having a good crop (although they are still early in the season) with expectations of a 53 to 55 MMT crop there vs 38 last year.

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