April 13, 2017

Farmers in Mato Grosso have Sold 63% of their 2016/17 Soybeans

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

According to the Mato Grosso Institute of Agricultural Economics (Imea), the farmers in Mato Grosso have sold 63.3% of their 2016/17 soybean production. This represents an advance of only 1.8% for the month of March, which is the smallest monthly increase in six months. The five-year average for soybean sales during the month of March is 5.6%. Last year at this time, farmers in the state had sold 71% of their crop.

Soybean prices in Brazil have declined for four straight months, so there is little wonder why farmers are holding onto their soybeans. The selling price during March in Mato Grosso averaged R$ 53.86 per sack (approximately $7.89 per bushel), which is the lowest thus far during the 2016/17 growing season. The average price for the entire growing season thus far is R$ 65.87 per sack (approximately $9.65 per bushel). The average selling price is higher than last year, but that is only due to the much higher prices farmers received many months ago when they started to forward contract their soybeans.

Going forward, the main hope for improved soybean prices would be from adverse weather during May or June in the United States. American farmers are going to plant a record large soybean crop in 2017, so there would need to be widespread adverse weather in the United States in order for the soybean prices to move significantly higher.