Better weather in Brazil helps complete soybean planting

Rainfall in central Brazil is still below normal, but there have been scattered rains over the past two weeks that have helped complete planting and develop soybean and corn crops.

Excess rains continue in the southern states, but their intensity will decrease by the end of the week, which will allow planting to be completed.

According to the AgRural agency, as of November 30, 85% of the planned area was sown with soybeans in Brazil, compared to 91% last year. Heavy rains in the south and drought in the central and western regions not only delayed planting, but also reduced the potential for future harvests.

Meanwhile, AgRural noted an acceleration in planting over the past week, particularly in Rio Grande do Sul state, where farmers began planting soybeans in between showers. In the north and northeast of the country, sowing operations have also intensified, but they are hampered by irregular rainfall.

Against the background of excessive heat and lack of rain in the main soybean-producing states, in particular in Mato Grosso, AgRural experts lowered the forecast for soybean production in Brazil in FY 2023/24 to 159.1 million tons, while in October it was estimated at 164.6 million tons, and at the beginning of November - 163.5 million tons.

During the week, January soybean futures on the Chicago Stock Exchange fell 3% to $480/t (-4.4% for the month), which corresponds to the level of early November, when the speculative increase in quotations began.