January 27, 2015
Farmers in Mato Grosso have sold 45% of their Soy, Sales Slowing
As of last week, farmers in Mato Grosso had forward contracted 45% of their anticipated 2014/15 soybean production compared to 55% last year at this time. Soybean farmers in Brazil have recently slowed down their selling pace due to a decline in soybean prices at the Chicago Board of Trade and the recent strengthening of the Brazilian currency. As of the end of December, Brazilian farmers had collectively sold 31% of their soybeans compared to 43% a year earlier.
Farmers are also hoping for improved domestic prices due to either a reduction in the Brazilian soybean crop caused by the recent dry weather or increased premiums paid by buyers to entice farmers to let go of more of their crop. Sales are expected to remain slow until the harvest pace accelerates during the second half of February and into March.