Sep 15, 2009
Early Start To Planting In Brazil Means An Early Start To Exports
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Farmers in Mato Grosso started planting their 2009-10-soybean crop last week. This year, the rains in central Brazil have started early allowing for an early start to planting as well. More and more farmers in Mato Grosso are opting to plant early maturing soybeans or even extra-early maturing soybeans. Statewide in Mato Grosso, it is estimated that at least 35% of the soybeans will be early maturing and in specific localities where they like to plant a second crop or corn or cotton, it might be as high as 60%.
Early maturing soybeans in Mato Grosso offer several advantages. The quicker the soybeans can be harvested, the fewer the number of fungicide applications that are needed to control soybean rust. If the rust moves into the fields late, a farmer may need to only make one fungicide application. Another advantage of early maturing soybeans is that they can be harvested early as well allowing for a second crop of corn or even cotton to be planted.
As far as the market is concerned, an early start to the soybean harvest means an early start to soybean exports out of Brazil as well. A few of the extra-early maturing varieties may be harvested as early as the end of December. Generally though, the early soybeans begin to be harvested about mid-January. The first soybeans always go to local processors who are usually willing to pay a premium for the soybeans in order to get their operations up and running. Once the processors have enough soybeans to begin operations, the excess soybeans start to flow to the Brazilian ports by late January or early February.
This growing season the soybean exports out of Brazil may start earlier than normal because they are planting early and more farmers are planting early maturing soybeans. I would not be surprised if the first vessel of new crop soybeans gets loaded out of Brazil by late January.