Brazil completes sowing of soybeans and started harvesting, which increases the pressure on the quotes

According to the Conab agency, as of December 24, soybeans were planted on 45.3 mln ha or 96.8% of the planned area in Brazil, which is almost the same as last year, although the planted area increased by 2.5%.

As a reminder, the drought in the central and western regions and excessive rainfall in the south of the country caused by the El Niño phenomenon delayed sowing and in some places forced farmers to reseed some crops.

In the state of Mato Grosso, which is the main agricultural region of the country, soybean harvesting started the earliest in history due to the heat. According to Imea, as of December 22, 121 thou hectares or 1% of the area was threshed. Due to the prolonged drought, soybean yields at the beginning of the harvest are the lowest in 40 years, and in general, according to the agency’s experts, they will be 7% lower than last year.

Local agency Abiove lowered the forecast of soybean crop in Brazil by 1.6 mln tonnes to 160.3 mln tonnes, while USDA estimates it at 161 mln tonnes, and Profarmer – at 153 mln tonnes. At the same time, analysts’ estimates take into account the precipitation forecast for the next 3 weeks.

the January futures for soybeans on the Chicago stock exchange in anticipation of increased supplies from South America for the week rose by 0.7% to 483,9 $/t, which is 2.2% lower than last month.

In Ukraine, amid declining export demand, prices in ports have stabilized at 450-470 $/t or 18000-19000 UAH/t, but processors keep prices at 17500-18500 UAH/t, which allows them to increase purchases.

Argentine farmers, as expected, are increasing exports of soybeans, which increases the pressure on the quotes.

Tags: Brazil, soybean, harvesting, sowing