Feb 01, 2010
Heavy Rains Continue To Worry Brazilian Farmers
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
As Brazilian farmers prepare to harvest the second largest grain crop in history (Conab is estimating total 2009-10 Brazilian grain production at 141.3 million tons), persistent heavy rains continue to worry many farmers throughout the country. Earlier in the growing season, areas in southern Brazil received record high rainfall during November and December. During the month of January, the state of Sao Paulo has recorded the most rainfall in 30 years and the situation is similar in other parts of the country as well.
The heavy rains are driving up costs due to increasing pest pressure and disease pressure. They are also reducing the quality of the grain, driving up drying costs, and making it difficult to transport grain along unimproved rural roads. There is some level of risk from the heavy rains for all the crops that are grown in Brazil, but edible beans seem to have been most affected thus far. In southwestern Sao Paulo, which is one of the principal production regions for edible beans in Brazil, the heavy rains have caused losses as high as 60% due to poor yields and poor grain quality. The quality of edible beans can deteriorate very quickly if rainfall persists when the crop is mature and many farmers are reporting that the grain quality is so poor that they are selling their production for a fraction of the normal price.
The early corn harvest in Sao Paulo has also been slowed by the wet weather. Farmers in Sao Paulo are taking advantage of the occasional dry weather to harvest their corn regardless of moisture content of the grain. There are reports of farmers harvesting corn with moisture content as high as 26%, which means they are spending much more on drying costs as well. Many agronomists in Sao Paulo are also concerned that the wet weather has promoted vegetative development of the crops, but the lack of sunshine will impede grain development.
In Mato Grosso the rainfall has resulted in increased chemical costs to control rust and leaf-eating insects as well as increased transportation costs due to poor condition of the rural roads. Early yield reports out of Mato Grosso indicate that the yields are within early expectations, but the true test will come when the combines start harvesting the crops most affected by the wet weather.
In addition the wet weather, farmers all across Brazil are very worried about the declining corn and soybean prices as well. As one farmer put it, the price of soybeans is just like the rain, it doesn't stop falling.