the harvest of Soy of Brazil reached 81.7% of all cultivated area in the country in the 2021/22 season until the end of last week, said this Monday the consultancy Homeland Agribusinessnoting that field work is slower towards the end, as are sales limited by falling prices.
Harvest work, which advanced about five percentage points compared to the previous week, is still ahead of the five-year average for the season, 79.4%, but losing pace.
There are important delays in activities in Rio Grande do Sul, which has suffered serious dry in the 2021/22 season – contributing to a drastic drop in Brazilian crop— and now records excessive rains in some places.
According to figures from the consultancy, Rio Grande do Sul had harvested just over a quarter of its soybeans by the end of last week.
“At the moment, we have concerns focusing on the extremes of Brazil (extreme north and extreme south), since the vast majority of the Brazilian crop in the center of the country has already been harvested”, said the director of Pátria AgroNegócios, Matheus Pereira.
Most states have already exceeded 90% of the harvested area, with the exception of Rio Grande do Sul, Santa Catarina, Maranhão, Bahia, Piauí and Pará, according to the data.
“The curious fact is that we had an extremely fast start to the crop, however this final stretch is very slow. We are losing the inertia of keeping the weekly progress in the field at record levels, in fact, we have already lost!”, said Pereira.
According to him, the difficulties of harvesting in Rio Grande do Sul have now become “the center of attention for the Brazilian market”.
“After the lack of rain during the development of the Gaucho crops, there are now reports of difficulties with excess rainfall.”
With regard to business, the recent decline in soybean prices on the Chicago stock exchange made the producer limit sales. The commodity hit nearly ten-year highs in March, above $17 a bushel.
“The volume of business has slowed down, despite the fact that we are currently experiencing a high need for cash collection on the part of the rural producer. It is a period of high expenses with funding, funding… ”, he said.
Prices plummeted last week after the US government estimated higher-than-expected US planting in 2022. In addition, the dollar is devaluing against the real.
“The drop in soybeans in Brazil at this very moment, which was caused by the appreciation of our currency, comes at a painful period at the base of the production chain: rural producers.”
Just last Friday, according to data from Cepea, soybeans traded at the port of Paranaguá had a daily drop of more than 4%, to 178.54 reais per 60 kg bag.
Source: Moneytimes
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