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November 6, 2013

Farmers in Mato Grosso Planting Soybeans at a Record Pace

For the first 30 days of the planting season (September 15 to October 15), the planting pace in Mato Grosso was slower than normal due to the irregular rainfall. During the second half of October, the improved conditions allowed the plating to proceed at a record pace. During the last 15 days of October farmers in the state planted 45% of their anticipated soybeans (8.3 million hectares). Thus far this planting season, farmers in the state have been on a pace to plant approximately 121,000 hectares per day (296,000 acres per day). At this point last year, the planting pace was estimated at 101,000 hectares per day (249,000 acres per day).

The concentrated planting period also means that the harvest will be concentrated as well. Farmers are being alerted to the fact that they may need to contract additional custom harvesters as well as trucking companies to handle the onslaught next harvest season. The increased demand for trucks during the harvest is also expected to drive up freight rates at the peak of the harvest to even higher levels than last year.

The average forward selling price for soybeans in Mato Grosso during the last week of October for delivery in February and payment in March was R$ 45.67 per sack of 60 kilograms or approximately US$ 9.43 a bushel. Soybean prices in the state varied widely in the state depending on the location. In Rondonopolis located in southeastern Mato Grosso, which is closer to the ports, the maximum price last week was R$ 49.45 a sack (approximately US$ 10.20 a bushel), but in Sorriso in central Mato Grosso it was R$ 43.09 per sack (approximately US$ 8.90 a bushel) and in northern Mato Grosso in the city of Sinop, it was R$ 41.50 a sack or approximately US$ 8.57 a bushel. The difference in price just within the state was US$ 1.63 a bushel.

Farmers in Brazil actually got a bit of good news last week as the price of soybeans on the Chicago Board of Trade declined 2.6% last week, but the Brazilian currency increased in value by 3.4% last week. So farmers in Brazil actually did a little better last week due to the currency.