December 14, 2012

Soybeans are the Most Valuable Grain Crop in Brazil

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

In its latest assessment of the 2012/13 Brazilian crops, Conab estimated that Brazilian farmers will produce 82.6 million tons of soybeans or 24.5% more than the 66.3 million tons produced in 2011/12. The gross value of the 2012/13 soybean crop is estimated at R$ 104 billion making it the most valuable grain crop produced in Brazil. Due to higher prices, the gross value of the 2012/13 soybean crop is 52% greater than the 2011/12 soybean crop.

The second most valuable row crop is sugarcane valued at R$ 45.2 billion followed by corn at R$ 38.8 billion.

While the value of the soybean crop increased in 2012/13, the cost of producing and transporting the crop has also increased. In October 2012 fertilizer costs in Mato Grosso were 27% higher compared to October of 2011. The cost of transporting the crop has also increased by as much as 50% more compared to a year earlier. It currently cost approximately US$ 3.40 per bushel to ship soybeans from central Mato Grosso to the Port of Paranagua in southern Brazil and that is expected to go even higher at the peak of the harvest season.