December 8, 2010

Soy Planting Wrapped up in Mato Grosso, Farmers Rapid Sellers

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

After a much delayed start due to a prolonged dry season, planting of the 2010/11 soybean crop in Mato Grosso has now wrapped up for the season. According to the latest report from the Mato Grosso Institute of Agricultural Economics (Imea), planting of the 2010/11 soybean crop in Mato Grosso is now 99% complete. While the planting is ending at about the same time as it did last year, the start of the planting was delayed by approximately a month for most of the farmers in the state.

The first soybeans planted in Brazil are usually planted in Lucas do Rio Verde, which is located in central Mato Grosso, but that was not the case this year. In fact, a lack of soil moisture in central Mato Grosso allowed for farmers in the state of Parana to be the first to plant their 2010/11 soybeans.

The delayed start also means that the start to soybean harvesting in Mato Grosso will be delayed as well. During the 2009/10 growing season, a few fields of soybeans were harvested before the end of December 2009. With the delayed start to planting, estimates are that the soybean harvest in Mato Grosso will not begin until after mid-January 2011.

The delayed planting of the soybeans will also delay the start to the safrinha planting as well. The safrinha corn crop is planted immediately after the soybeans are harvested and planting needs to occur as early as possible in order to allow enough time for the crop to mature before the onset of the next dry season. The planting window for the safrinha corn crop usually closes about the third week of February. If the corn is planted after that time, there is the risk that the crop will run out of moisture before it completes its life cycle.

The farmers in Mato Grosso have already forward sold approximately 60% of their anticipated soybean production. Forward selling in the state has slowed in recent weeks as soybean prices have softened. Additional selling will depend on soybean prices and how assured farmers are of their anticipated production.