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March 22, 2017

Farmers in Mato Grosso have only sold 61% of their Soybean Crop

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

Many Brazilian farmers feel they missed an opportunity several months ago to sell their soybeans at a much better price than what is currently being offered. As a result, they have now slowed down their selling in the hope of better prices in the future.

The Mato Grosso Institute of Agricultural Economics (Imea) recently stated that farmer sales of soybeans in Mato Grosso during the month of February were the slowest since Imea started tracking the commercialization of soybeans in the state in 2009. By the end of February, farmers in Mato Grosso had sold 61% of their anticipated soybean production, which was up only 3% for the month. The current sales pace is 4% behind last year's pace.

The average sale price during February was R$ 58.55 per sack (approximately $8.58 per bushel), which was the lowest thus far this growing season. Imea is expecting prices to stay range bound at least in the near term and they expect farmers to continue to be slow sellers at least for another month.

Sales are slow due to slumping commodity process and a stronger Brazilian currency.