Harvesting steps up, and number of deals increases in Brazil

Cepea, March 2, 2021 – The harvesting of soybean crops stepped up in Paraná and central-western Brazil in late February. Gradually, more crops are entering into the maturation stage, and low moisture allows activities to go on. The harvesting pace could be faster if the supply of pesticides for crop drying was not low. Higher soybean supply is increasing the number of deals in the spot market, since a large amount of the output has already been sold through term contracts.

 

Agents consulted by Cepea have reported that the harvesting of soybean crops has reached 20% of the total in Brazil. Conab (Brazil’s National Company for Food Supply) estimates that, up to February 19, 15.5% of the soybean area had been harvested in Brazil. Among the states, 36.4% of crops have been harvested in Mato Grosso; 12% in Mato Grosso do Sul; 13% in Goiás, Minas Gerais and Santa Catarina; 15% in Tocantins; and 5% in Paraná, Maranhão and Bahia.

 

Similar to that reported by Conab, Imea indicates that the harvesting in MT had reached 34.51% of the state area up to February 19. However, Cepea collaborators have reported that activities had reached 50% in Sorriso and in Sinop up to Feb. 25.

 

In Paraná, 8% of the area had been sown until Feb. 22, according to Deral/Seab, but 46% of crops are in the maturation stage, with 80% of them in good conditions.

 

According to data from CPTEC (weather forecast agency), there is low chance of rainfall in southern Brazil in the coming days, which may allow activities to step up. However, higher rainfall is forecast for central-western, southeastern and northern Brazil, which may hamper the harvesting of soybean crops and corn sowing in these areas.

 

Precipitation may also hamper soybean exports. Ship queues at Brazilian ports are making agents from trading companies worried about having to pay fines, while the low availability of trucks has been increasing road freight since early February. Thus, many farmers are selling soybean for delivery from April onwards only.

 

PRICES – The ESALQ/BM&FBovespa Index Paranaguá (PR) dropped by a slight 0.5% between Jan. 29 and Feb. 26, to 167.45 BRL (30.00 USD)/bag on Feb. 26. The CEPEA/ESALQ Index Paraná decreased by 3.1% in the same period, to 160.52 BRL (28.76 USD)/bag.

 

(Cepea-Brazil)

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