Sowing steps up in Brazil, but low moisture concerns and reduces interest in sales

Cepea, December 1, 2020 – Soybean sowing stepped up in South America in late November, pressing down prices in Brazil. However, low rainfall is concerning Brazilian farmers, who stayed away from the market, reducing liquidity. With irregular rainfall, some of the crops sown between September and October have plants in different stages of development. Thus, there are uncertainties about the need of replanting as well as the recovery of developing crops.

 

Soybean sowing is ending in Brazil. According to data from Conab (Brazil’s National Company for Food Supply) released on Nov. 23, activities had reached 79% of the area. In Mato Grosso, Imea indicated that, until Nov. 20, sowing had reached 98.47% of the total estimated, slightly over that in the same period last season. As regards trades, 64.38% of the total 2020/21 crop may have been sold in that state, up from the 36.03% in the same period last year.

 

In Paraná, according to Seab/Deral, sowing had reached 97% of the area until Nov. 23. Of the crops sown in that state, 72% were in good conditions in late November, 24%, in average conditions, and 4%, in bad conditions. In Rio Grande do Sul, activities had reached 47% of the area, according to a report released by Emater on Nov. 26, against 63% in the same period last year.

 

PRICES – Considering that around 60% of the soybean output, estimated by Conab at 134.95 million tons, has been sold, sellers are now waiting for better definitions about the crop in order to close deals. Besides, purchasers expect prices to drop.

 

Between Oct. 30 and nov.30, the ESALQ/BM&FBovespa Paranaguá (PR) decreased by 1.08%, to 161.77 BRL (30.22)/bag on Nov. 30. The CEPEA/ESALQ Index in Paraná, in turn, dropped by 3.6%, to 159.94 BRL (29.88 USD)/bag.

 

(Cepea-Brazil)

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