April 4, 2013

Farmers in Southern Brazil Pleased with Soybean Yields and Prices

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

Farmers in Parana have harvested approximately 82% of their 2012/13 soybean crop and they are pleased with both the yields of their soybeans and the prices being paid for their crop. According to the Department of Rural Economics (Deral), farmers in the state have harvested slightly more than eighty percent of the 4.4 million hectares of soybeans planted in the state. The total soybean production in the state is estimated at 15.2 million tons or 41% more than the drought ravaged crop of 2011/12.

The full-season corn crop is 70% harvested and Deral is estimating that the crop will produce 6.84 million tons or 4% more than in 2011/12. The corn harvest pace is slower than last because farmers have been focusing on the soybean harvest in an effort to prevent seed deterioration due to wet weather.

As farmers harvest their soybeans, they are actively planting their safrinha corn which is 96% planted. The safrinha corn acreage is expected to be 2.06 million hectares with a total production of 11.3 million tons, if the weather cooperates. The safrinha corn is 3% germinating, 80% in vegetative development, 16% pollinating, and 1% filling grain. The condition of the safrinha corn is rated 95% good and 5% average.

It's possible that the state will set a new record for total first crop grain production including soybeans, full-season corn, and dry beans of 22.5 million tons. If achieved, it would surpass the 22.2 million tons produced in 2010/11. If you combine the first planting, the second planting, and the winter grain production, the state should produce a total of 37 million tons of grain.

In addition to big yields, farmers are selling the crop for prices much higher than last year. The average price paid to farmers in Parana for their soybeans during the month of February was R$ 55.63 per sack of 60 kilograms, which is significantly higher than the R$ 43.47 paid per sack in February of 2012.

The higher prices have also carried over to corn and dry beans as well. The average price paid for corn in February was R$ 25.06 per sack compared to R$ 23.07 per sack last year. A sack of dry beans sold for R$ 172.02 in February compared to R$ 128.74 per sack in February of 2012.