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March 18, 2019

76% of Mato Grosso's Soybean Exports in Jan/Feb went to China

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

Brazilian farmers and exporters continue to take advantage of the trade dispute between the United States and China by increasing their soybean exports. According to the director of SIM Consult, China purchased 20 vessels of Brazilian soybeans last week alone and the volume of Brazil's soybean exports is expected to increase in April and May.

Data from the Mato Grosso Institute of Agricultural Economics (Imea) indicated that farmers in Mato Grosso sold 7.4% of their 2018/19 soybean production last week bringing the total sales of the 2018/19 crop to 61.2%. The state of Mato Grosso was responsible for 30% of Brazil's soybean exports during the first two months of 2019. During January and February of 2019, 76.6% of Mato Grosso's soybean exports went to China compared to 61.2% for the same period in 2018.

Farmers in Mato Grosso are looking forward as well and they have already starting to forward contract their 2019/20 soybean crop that will be planted in September and October and harvest in early 2020. Farmers in Mato Grosso have sold 2.4% of the crop at an average price of R$ 66.94 per sack (approximately $8.00 per bushel).