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October 1, 2015

Most Advanced Soybean Planting in Brazil is in the State of Parana

Brazilian soybean producers are in the process of starting to plant their 2015/16 soybean crop and farmers in the state of Parana are more advanced in their planting progress than in any other state in Brazil. According to the Department of Rural Economics (Deral), as of September 28th, farmers in Parana have planted 13% of their 2015/16 soybean crop compared to 9% last year. Prior to this past week, planting progress had been slowed by hot and dry conditions, but over the past week, the weather has improved for soybean planting due to frequent shower activity.

In the western part of the state near the cities of Cascavel and Toledo, approximately half of the soybeans have been planted and the crop is in early vegetative development. Parana is the second largest soybean producing state in Brazil after Mato Grosso and Deral is expecting the state to produce 18.0 million tons of soybeans or 6% more than in 2014/15.

Soybean prices are relatively good in the state and farmers have forward contracted approximately 30% of their anticipated production compared to less than 10% last year at this time. The weaker Brazilian currency has resulted in improved soybean prices in the state in the range of R$ 67 to R$ 70 per sack, which is enough to cover the cost of production and result in a profit for the producers.

Deral also reported that 62% of the wheat in Parana has been harvested which is up from last week's 49%. Deral recently reduced their estimate of the Parana wheat crop by 10% to 3.6 million tons citing excessive moisture in June and frost in early September. The wheat harvest in Parana should be complete by the end of October and all the wheat in Parana will be followed by soybeans.