Excess rainfall in Brazil lowers quality of soybeans, could generate crop decrease

RIO DE JANEIRO, BRAZIL – The heavy rainfall in some of the main soybean producing regions in Brazil has lowered grain quality and is already leading to losses for the 2020/21 crop, although the country is still heading for a record harvest, according to industry insiders and experts.

The president of the Brazilian Association of Soybean Producers (APROSOJA Brasil), Bartolomeu Braz Pereira, stated that a downward review will be made to the association’s latest projection, which stands between 129 million and 130 million tons for the oilseed.

“The rain problem is widespread … it is serious and there are many issues in grain quality, burnt grains, producers are losing considerably as a result,” he said.

According to him, farmers are making losses because of grains that could not be harvested and due to the reduction in weight of the harvested product, which is excessively humid.

The situation has been observed in regions of “Mato Grosso, a good part of Goiás, Piauí, Maranhão, Paraná, a part of Minas Gerais. (In) Tocantins it is excessive,” said Pereira.

He also said that the revision in APROSOJA’s projection has not yet been done because the country, the largest global producer and exporter of oilseeds, is at the “epicenter” of the problem.

Accordingly, as soon as losses are more accurately assessed, the association’s figure – which is already lower than the 133.8 million tons projected by the National Supply Company (CONAB) – will be revised.

Earlier on Friday, the meteorological consulting company Rural Clima reduced its estimates for soybeans and second-crop corn, pointing to losses caused by the excess rainfall.

The weather in South America is on the market’s radar and even prompted highs in the Chicago stock exchange this week. In addition to heavy rainfall in Brazil, drought events in Argentina have raised an alert about global supply.

On Friday, for instance, the most active soybean contract rose 19.50 cents to US$14.30 per bushel.

Harvest

After a late planting and difficult access to the fields, amid much rainfall, Brazil is experiencing a slow and delayed crop harvest.

According to Pátria AgroNegócios consulting company, 34.19% of the Brazilian soybean crop had been harvested by this Friday, compared to 52.26% over the same period in 2020 and a historical average of 52.60%.

The consultancy estimates that between 44 and 44.5 million tons of the oilseed have already been picked from the fields.

“Pátria has been alerted by its clients in the center-north of Brazil that relentless rains continue to hinder the harvest from progressing, while harvested fields in southern Brazil are showing disappointing numbers brought on by consecutive drought weeks.”

Matheus Pereira, director of Pátria, pointed out that in the first seven days of soy ready to be harvested, the grain loses 1% of weight per day in the field. After seven days, losses increase to 2% per day.

In Mato Grosso, the largest producer state of the crop, harvesting increased to 67.20% of the area, a 15-point rise in one week, reported the Mato Grosso Institute for Agricultural Economics (IMEA).

However, the work is 24.27 points behind what was recorded over the same time in 2019/20 and is 13.07 points behind the historical average for this time of year, according to the institute.

Regarding the rains, IMEA’s market intelligence manager Cleiton Gauer said that the agency began to receive reports of more severe problems in recent weeks, but there is still no assessment of the overall impact for the state.

According to Refinitiv data, the rains will continue in the coming days, with accumulations of approximately 60 millimeters until March 10th in Mato Grosso. Some areas in Paraná will register about 50 millimeters accumulation in the same period.

Source: G1