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March 23, 2020

Soybean Yields in Sinop, Mato Grosso Slightly Lower than Expected

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

The state of Mato Grosso is the largest soybean producing state in Brazil and the 2019/20 soybean harvest in the state is essentially complete. In the municipality of Sinop, which is located in northern Mato Grosso, the soybean harvest is complete and the yields have been within the normal range, but a little less than what had been expected.

According to the Director of the Rural Syndicate of Sinop, the soybean yield in the municipality averaged approximately 60 sacks per hectare (53.2 bu/ac) compared to initial estimates at the start of the growing season of 62 sacks per hectare (55.0 bu/ac).

Farmers have taken advantage of the good domestic prices and they have sold approximately 80% of the production for an average price of about R$ 67 per sack (approximately$7.50 per bushel). Most of the sales were completed before the recent weakening of the Brazilian currency due to the coronavirus crisis. When most of the soybeans were sold, the Brazilian currency was trading in the range of 4 reals per dollar. Currently, the exchange rate is in the range of 5 reals per dollar.

Many of the soybeans in the region is followed by a second crop of corn and most farmers planted their corn within the normal planting window. A small percentage of the corn had to be replanted due to insect infestations. According to the Director of the Rural Syndicate, approximately 35% to 40% of the corn is approaching pollination and farmers are hoping for average corn yields, which are in the range of 95 to 105 sacks per hectare (87.7 to 97.0 bu/ac).

The region will depend on adequate rains through the month of April to insure good corn yields. Mato Grosso is also Brazil's largest safrinha corn producing state responsible for approximately 40% of Brazil's production.