Oct 06, 2010

Recent Rains End Prolonged Dry Season in Much of Brazil

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

Rains fell across much of southern and central Brazil over this past week and as a result, planting of the 2010/11 summer crops is now under way. Not everyone got enough rain to declare that the dry season has ended especially in eastern Mato Grosso, northern Goias and western Bahia, but the soil moisture has been recharged enough in most of the principal production areas to encourage farmers to start planting. More rain is forecasted for this week, so the situation should continue improving. Below are listed the three major agricultural states in Brazil and the planting progress in each state.

Mato Grosso

It was a rainy weekend in many areas of Mato Grosso to the relief of the farmers who have been waiting for the first rains of the summer and the end of what has been dryer than normal and hotter than normal dry season. In Rondonopolis for example, 1.4 inches of rain fell over the weekend and the forecast is calling for more showers this week. The rains of the last few days have been heavy enough for farmers to now start planting their 2010/11 soybean crop. Generally, farmers would like to receive 50-60 mm of rain (two inches) before they start planting.

Since the start of the rains was delayed this year, some farmers in the state took the risk of planting their soybeans in dry soils in anticipation of the rains. This is a risky proposition, but it appears to have paid off this year. They needed to get some of their soybeans planted so that there would be enough time after the soybeans are harvested to plant a second crop of corn or even cotton.

With the start of planting delayed several weeks compared to last year, there are reports of farmers switching some of their soybeans for shorter cycle varieties of 100 to 105 day maturity. Their goal is to plant a second crop of corn or cotton, so to achieve that goal; they are switching to shorter cycle soybeans. That way even though they are planted later, the soybean harvest might start only one or two weeks later than last year.

Farmers usually plant soybeans of different maturities (short, medium, long) in order to spread out their production risks and there are also reports of farmers deciding not to plant short cycle soybeans and instead plant full season cotton. Since it is a little late to plant short cycle soybeans, the high prices for cotton apparently convinced some farmers that cotton offered a better opportunity than soybeans.

According to the Mato Grosso Institute of Agricultural Economics (Imea), as of October 1st, farmers in Mato Grosso had planted 0.4% of their intended soybean acreage compared to 5% planted on October 1st, of 2009. Imea estimates that the soybean acreage of Mato Grosso will increase 0.4% compared to last year to 6.241 million hectares. Statewide yields for 2010/11 are estimated at 3,001 kilograms per hectare (43.5 bushels per acre) and the total production for the state is estimated at 18.729 million tons or 0.5% less than in 2009/10.

Parana

With the rains of this past week, the farmers in Parana are now actively planting their 2010/11 corn and soybean crops. According to the state's extension service, farmers in the state have planted 1% of their intended soybean acreage. Farmers have also managed to plant 20-30% of their intended corn acreage as well. The full season corn acreage in Parana is expected to decline 10-15% compared to last year. The planting pace for both crops is now expected to accelerate. It is a little late for corn planting in Parana, but it right on time to start planting soybeans.

Parana and Mato Grosso account for nearly half of Brazil's soybean crop and usually the farmers in Mato Grosso get a two or three week head start on planting soybeans, but the extended dry season has allowed the farmers in Parana to start planting their soybeans at the same time as in Mato Grosso.

The farmers in Parana are also actively harvesting their wheat crop which is now over 50% harvested. Yields are reported to be average and the grain quality is reported to be very good.

Rio Grande do Sul

The first summer crop planted in Rio Grande do Sul is corn and the extension service in the state reported last Friday that 41% of the intended corn acres in the state have been planted. Germination and stand establishment of the corn are said to be good.

Rio Grande do Sul is the second leading wheat producing state in Brazil and the wheat crop in the state is 4% mature and ready for harvest. Wheat yields are expected to be average and the quality is expected to be better than last year. All of the wheat acres in the state will be planted to soybeans once the wheat is harvested.

The recent dry weather has also allowed rice farmers to make significant progress in preparing to plant their rice crop. Recent temperatures in the state have been cool and farmers indicate that they will wait for warmer temperatures before they start planting their rice crop.