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Soybeans price encourages commercialization

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The rise in soybean prices in the international and domestic markets in recent months continues to stimulate the commercialization of grains harvested by Brazilian producers in this 2017/18 harvest.

According to the consultancy Datagro, 54% of the estimated national production was already compromised until the end of last week, against 44% in the previous week. There is still a small delay over the entity’s calculation for the same period’s average over the last five years (56%), but the gap has narrowed.

According to the National Supply Company (Conab), the soybean harvest in Brazil will hit a new record in the current cycle. It will reach 115 million tons, 0.8% more than in 2016/17 (114.1 million tons).

Thanks to the good development of the crop, this volume is more than 5 million tons higher than the one designed by the state-owned company in December. According to Datagro, 81% of the area planted in the season (35.1 million hectares) was harvested until last Friday.

With this increase and the appreciation of prices – which this year, despite the strong drop yesterday, reaches 10% in the Chicago stock exchange and 15% in important Brazilian poles – the Ministry of Agriculture began to estimate the gross value of production of the grain this year at R $ 124.7 billion, 3.8% above 2017 and also a new historical record.

With prices shifting, driven by the collapse of the Argentine crop and the increase in premiums for Brazilian soybeans in ports, thanks to the commercial tension between the United States and China, commercialization in Mato Grosso is already faster than in the last cycle.

According to the Mato Grosso Institute of Agricultural Economics (Imea / Famato), 71% of the expected production for the state – 31.8 million tons, an increase of 1.6% – has been sold so far, compared to 66.6% in the same last year, when the commercialization of the 2016/17 crop was at stake.

“In any case, it is productivity that is guaranteeing margins. Prices are only less worse, and in some regions there are still problems of profitability,” says Marcos da Rosa, president of Aprosoja Brasil, which represents grain producers.

According to him, production costs are high, logistical and tax problems persist and price increases are often absorbed by tradings and do not reach the farmer. “The country has to have a project and public spending has to respond to the height”, says (Assessoria de Comunicação, 17/4/18)