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March 21, 2018

Rains Benefit Soybeans in Rio Grande do Sul in Southern Brazil

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

There were some rains over the weekend and early this week in the state of Rio Grande do Sul in southern Brazil. The rains were very timely for the later developing soybeans in the northern part of the state where over 80% of the soybeans are produced. The southern half of the state received some rain as well, but they came very late since the region has been in a severe drought for nearly the entire growing season. The rains in the northern part of the state are expected to help the crop compensate for the loses in the southern half of the state.

According to AgRural, the Brazilian soybean crop is now 58% harvested compared to 62% last year. This represents and advance of 10 points for the week. Mato Grosso leads the way with 91% harvested followed by Mato Grosso do Sul with 86%, Goias with 81%, and Parana with 69%. In Rio Grande do Sul, the crop is 2% harvested and the state received very timely rains earlier last week for the later maturing soybeans.

In northeastern Brazil the soybean harvest is 15 to 20% complete. Farmers in northeastern Brazil (Bahia, Tocantins, Maranhao, and Piaui) are expecting to harvest another record high soybean crop. The rainfall this growing season has been very good and very well distributed. They are now hoping that the rains will decrease as the harvest pace picks up.

Farmers in Mato Grosso have sold 61% of their 2017/18 soybean production compared to 63% last year and 71% for the 5-year average. As you would expect, the selling pace has been increasing over the last few weeks due to improved prices and a weaker Brazilian currency. The Brazilian currency is currently trading in the range of 3.30 reals per U.S. dollar.