The markets of soybeans and corn are awaiting news about the progress of the sowing campaign in Brazil
the Brazilian Agency Conab reports that at the beginning of the 2016/17 MG carry-over stocks of corn in the country was 7.9 million tonnes for the season was produced 91,1 million tons of corn, domestic consumption is estimated at 56.1 million tons, export is possible, within 28 mln t, and ending stocks – to 21.5 million tonnes.
This situation caused a fall in domestic procurement prices, in some provinces, even to levels below cost.
The concerns of farmers, the current price level will lead to a reduction of maize. USDA experts believe that the acreage will be reduced by 2%, however, the Agency Conab predicts a 5% reduction.
According to estimates by USDA, the corn crop in 2017/18 MG will reach 95 million tons.
Analysts Conab sure that next season the majority of farmers prefer the cultivation of soybeans, which is more profitable than corn production.
Sowing of soybeans in Brazil may begin late due to the shortage of moisture in the major States producing oil – Mato Grosso, Parana, Mato gross de Sul, whose share in the total soy production reaches 50%. The lack of precipitation in these regions over the next 10 days can not only shift the timing of sowing, but also to slow its progress.
In General, the soybean crop in Brazil, analysts estimate 2017/18 season at the level of 108.5 million tonnes While the volume of export of oil in 2018 may reach a record 65 million tonnes due to increased imports of soybeans to China.