Sep 27, 2010
Framers in Brazil Aggressively Forward Selling Their 2010/11 Crop
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Even though most farmers in Mato Grosso are just now beginning to plant their 2010/11 soybean crop, they have already been actively forward selling their anticipated soybean crop to take advantage of the stronger prices. According the Mato Grosso Institute of Agricultural Economics (Imea), approximately 37% of the 2010/11 soybean crop has already been priced compared to last year when 22.5% of the crop had been priced at the same time.
Additionally, very little of the 2009/10 soybean crop remains to be sold. Imea reported that 97.6% of last year's soybean crop in the state has also been sold.
In their early evaluation of the 2010/11 growing season, Imea anticipates that farmers in Mato Grosso will increase their soybean planted acreage to 6.24 million hectares compared to 6.21 million hectares planted in 2009/10 or an increase of 0.4%.
Imea also reported that farmers in Mato Grosso have sold 87.8% of their 2010 safrinha corn crop which is nearly twice as much as the 47.8% of the 2009 safrinha corn crop that had been sold by September of 2009. The rapid sale of the corn this year is the direct result of the PEP Program in which the Brazilian government purchased over ten million tons of corn at subsidized prices and then subsidized the cost of transporting the corn to exporters. Last year at this time the program had not yet been put in place.