Brazilian Farmers Still Slow Sellers of their Crops

As of September 1, 2023, Brazilian farmers had sold 80.7% of their 2022/23 soybean production compared to 84.2% last year and 88.8% average according to the consulting firm DATAGRO. This represents an advance of 6.8% for the month of August. The record for September 1st was 96.6% sold in 2020.

Farmer selling picked up in August as farmers needed to pay bills, purchase inputs for the 2023/24 crop and in some cases to open storage space for the safrinha corn harvest.

For the 2023/24 soybean crop that will be planted over the next few months, Brazilian farmers have forward contracted 18.1% of their anticipated production as of September 1st compared to 16.2% last year and 25.8% average. This represented an advance of 4% for the month of August. The record for September 1st was 46.7% in 2020.

Farmers in Brazil have been slow sellers of their soybeans due to depressed prices. In Mato Grosso for example, the current spot price for soybeans is R$ 118.00 per sack or approximately $11.00 per bushel.

For the first crop corn produced in southern Brazil last growing season, farmers have sold 72.4% of their production compared to 74.6% last year and 83.4% average. This represents an advance of 9.3% for the month of August.

For the 2022/23 safrinha corn just harvested, Brazilian farmers have sold 51.7% of their corn compared to 55.1% last year and 68.6% average. Disappointing prices have convinced farmers to hold onto their corn in the hope of improved prices. The state of Mato Grosso is the largest safrinha corn producing state in Brazil and the current spot price for corn in the state is R$ 34.00 per sack or approximately $3.20 per bushel.

Tags: Production, crop, safrinha corn, first crop corn, sold, Brazil, prices, soybean