Farmer Sales are Slow in Brazil – 51% of 2022/23 Soybeans Sold

Brazilian farmers have sold 51% of their 2022/23 soybean production as of May 5th according to the consulting firm Safras & Mercado. This represents an increase of 6.7% compared to a month earlier but it still trails last year’s 61% and the average of 67%.

Farmers have been cautious sellers due to the lowest soybean prices in three years. After two strong years of record prices, farmers were well capitalized going into the 2022/23 harvest and they could afford to hold off on sales while they waiting for improved prices. Unfortunately, higher prices did not materialize and some farmers may not be forced to sell their soybeans to pay bills and to make room for the impending safrinha corn harvest.

Farmers are also not very enthusiastic concerning forward contracting of their 2023/24 soybean crop as well. Safras & Mercado reported that Brazilian farmers have forward contracted 6% of their anticipated 2023/24 production as of May 5th compared to 12% last year and 17% average. Safras & Mercado is estimating the 2023/24 Brazilian soybean production at 155 million tons.

Tags: harvest, Brazil, prices, soybean, Production, farmers, crop, sold