Home Agribusiness Uncertainty clouds Brazil’s new soybean crop

Uncertainty clouds Brazil’s new soybean crop

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As soon as rains appear in the sky, soybean planting season will kick off in Brazil.

However, the start of the 2017-18 season in the world’s largest soybean exporter — and probably the entire season — is set to be bumpy and full of uncertainties.

As of September 16, farmers were authorised to start sowing in Mato Grosso and Parana states, the two main producers in the country.

Weather forecasters warn, though, that rains have not arrived yet and may not arrive anytime soon. Cooler-than-average waters in the Pacific Ocean — but not cool enough to characterize a La Niña phenomenon — will make rains irregular during the first fours weeks of the planting period, until mid October.

Only on the second half of October the precipitation will normalise and planting will go on properly, according to specialists.

So much uncertainty leads to extreme cautiousness among farmers and that leads to slow farmers sales. In fact, the new season is already open and there is a lot of beans from 2016-17 to be sold. Farmers sales of the old crop are currently at 80 per cent, down from 89 per cent at the same period last season, according to estimates by Safras & Mercado consultancy.