Sep 09, 2010
Mato Grosso Farmers Are Aggressive Forward Sellers of Soybeans
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Soybean producers in Mato Grosso have taken advantage of the improved soybean prices by being aggressive forward sellers of their anticipated 2010/11 soybean production. Even though no soybeans have been planted in the state, Mato Grosso farmers have already sold a significant portion of their crop. According to Mato Grosso Institute of Agricultural Economics, as of September 1st, 27% of the state's 2010/11 soybean crop has already been priced, which is 6% more than what had been priced last year at this time.
Many farmers in the state are pricing the amount of soybeans needed to cover their production costs, thus insuring at least a breakeven year.
Farmers in Mato Grosso are allowed to start planting soybeans on September 16th. That is the end of the 90-day soybean free period that was imposed several years ago in an attempt to limit the early spread of soybean rust into newly planted commercial soybean fields. Even though they are allowed to start planting on that date, there have not been any significant rains in the region since April and farmers will not plant until they receive at least two rains of one inch or more. That way they can be assured of successful germination and seedling establishment.