All Things Considered Soybean Is Still Gold for Brazilian Farmers

Soybean Despite growing pest problems and soaring fertilizer and transport costs Brazil’s soybean farmers will plant their highest-ever acreage next season.

Soybean growers in the world’s second ranked producing country will raise sowings by about 100,000 hectares to 23.3m hectares for 2010-11, matching a record set six years before, a report from the US Department of Agriculture’s Brasília bureau said.

Despite sugar prices firm by historic standards, even after their recent collapse, and the cotton market remaining strong, soybeans “will remain the favored crop due to their market liquidity”.

“A very limited amount of soybean acreage will be converted to sugarcane,” the briefing said.

The increase defies a fall in soybean prices to their lowest last month since August 2007, undermined by expectations of record South American production, while many of farmers’ bills have soared.

Fertilizer costs have jumped by 20% over the past month and “continue to rise”, the report said, adding that trucking rates had jumped by up to 50% this season thanks to a squeeze on capacity.

“High transportation costs continue to significantly affect producers’ profitability” the briefing said, adding that infrastructure improvements such as new road and rail routes were failing to keep up with production growth.

Furthermore, farmers needed to make “significant investments” in sprays to keep pests until control. “Lack of crop rotation practices in the North and Northeast regions has amplified disease and pest occurrences,” the bureau said.

The report pencilled in Brazil’s soybean production next year hitting 67.5m tons, in line with the record for 2009-10 as estimated by official USDA forecasts.

The data comes as US farmers are starting work on soybean plantings expected to rise by 647,000 acres to a record 78.1m acres.

Soybean prices, while down some 7% in Chicago this year, have fared better than those for corn and wheat, supported by strong Chinese demand for crop and some difficulties for South American producers in getting their crop onto vessels.

Nonetheless, the bureau is more upbeat than the USDA itself on the Brazil’s soybean export hopes, pegging them at a record 28.5m tons this season, supported by Chinese orders. The USDA on Friday forecast Brazil’s 2009-10 shipments at 26.3m tons.

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

In 15 Days, Brazil Exports US$ 4.4 Bi With 1.7 Bi Surplus

Brazil exported the equivalent to US$ 1.943 billion on the third week of January ...

Brazil Gearing Up for 2005

The Brazilian industries plan to invest more in 2005. According to a research disclosed ...

Germany and Brazil Join Forces in US$ 3 Billion Steel Project

Luiz Fernando Furlan, Brazil’s Minister of Development, Industry and Foreign Trade, participated last week ...

Furniture Show Brings Europe and US to Brazil

The International Machinery, Raw Materials and Accessories Trade Show for the Furniture Industry – ...

1.44%: First Quarter Inflation in Brazil. Thanks to Cheaper Food.

Brazil’s Broad Consumer Price Index (IPCA) registered 0.43% in March, very close to February’s ...

For Entrepreneurs Brazil’s Economy Will Chug Along Whoever Wins the Elections

A survey released Wednesday, January 25, by the American Chamber of Commerce of Rio ...

After Denouncing Fraud at Petrobras to Police, Ex-director Refuses to Talk to Congress

Paulo Roberto Costa, former director of the supplying department of Brazil’s state-owned oil multinational ...

Clinton’s Visit Shows Brazil’s Foreign Minister Less Flexible on Iran than His Boss Lula

US Secretary of State, Hillary Clinton’s one-day visit to Brazil was dominated by one ...

Brazil’s Minimum Wage Goes Up to US$ 119 a Month, May 1st

The monthly minimum wage increase from US$ 103 (260 reais) to US$ 119 (300 ...

Counting on Varig’s Demise Brazilian TAM Gets 37 New Airbus Jets

While once monopoly Brazilian Varig continues a painful agony in its death bed, TAM, ...