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October 30, 2013

Soybean Planting in Brazil Nears 40% Complete

After a relatively slow start to the planting season, improved weather in Brazil has allowed farmers to ramp up their soybean planting pace. Nationwide, the soybean planting in Brazil is approaching 40% complete, which is now slightly ahead of the five-year average.

The top three soybean producing states in Brazil are Mato Grosso, Parana, and Rio Grande do Sul. According to the Mato Grosso Institute of Agricultural Economics (Imea), farmers in the state have now planted approximately 51% of their intended soybean acreage, which is slightly faster than last year's pace. The Secretary of Agriculture in the state of Parana estimates that 60% of the soybeans have been planted in the state and the Extension Service in Rio Grande do Sul estimates that 5% of the soybeans in that state have been planted.

The 2013/14 soybean crop in Mato Grosso is estimated by Conab at 25.6 million tons or approximately 29% of Brazil's total soybean production. The state of Parana is expected to produce 16.4 million tons (18.7% of the total) and Rio Grande do Sul's production is estimated at 12.5 million tons (14.2% of the total production). Therefore, the top three states in Brazil will produce approximately 62% of Brazil's total soybean crop.

The state of Rio Grande do Sul plants their soybeans later than other major states in Brazil because much of the soybeans are planted after the wheat crop is harvested and farmers in the state are just now starting to harvest wheat.

The domestic price for forward contracted soybeans in Mato Grosso last week averaged approximately R$ 44.00 per sack of 60 kilograms or approximately US$ 9.13 per bushel. That was the price for March 2014 delivery with payment in April 2014.