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January 31, 2019

Soybean Prices in Mato Grosso decline as Harvest Progresses

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

Mato Grosso is the leading soybean producing state in Brazil and farmers in the state are harvesting their soybeans at more than double the average pace. AgResources reported that the soybean harvest in the state is 44% complete as of January 30th.

As farmers in Mato Grosso harvest their soybeans, the prices being offered in the state are declining. According to the Mato Grosso Institute of Agricultural Economics (Imea), at the end of December, soybean prices in the state were in the range of R$ 65.62 per sack (approximately $8.06 per bushel), but they have now declined to R$ 60.33 per sack (approximately $7.40 per bushel).

Imea attributes the declining prices to the increasing soybean supply as the harvest progresses, a lack of premiums at Brazilian ports, a strengthening of the Brazilian currency, and lackluster prices on the Chicago Board of Trade due to the trade dispute between the United States and China.

Corn prices in Mato Grosso also declined in January to an average of R$ 21.22 per sack (approximately $2.60 per bushel), which represents a decline of 6% compared to December. The same factors that influenced the soybean price also impacted the corn price in the state.