Rain showers forecast for this week should benefit soybean crops across Brazil and should not be heavy enough to hamper harvesting of the first shipments of the 2016-17 season, meteorologists said on Tuesday.
Brazil is getting ready for a blockbuster 2017 harvest and booming exports, amid favorable weather forecasts, according to recent estimates. With a plentiful harvest expected, Brazil’s National Grain Association predicts grain exports will rebound, with soybean exports of 60 MT in 2017, compared with some 51 MT for 2016. Corn exports will increase to 30 MT, compared with some 18.5 MT in 2016, the association reported.
Brazil and Argentina production estimates are going up, but hailstorms ruined soybean and corn crops in Argentina’s Santa Fe Province. However, La Niña is forecast to be relatively mild this year, according to NOAA forecasters.
Brazilian exports exceeded imports by US$23.6 billion in the first half of the year - a record for the period. In addition to the basic products, sales grew strongly with the sale of vehicles for Latin America. The data were released by the Ministry of Industry Trade and Services.
Domestic supplies of corn and soybeans will be tighter than expected in the United States as problems with crops in Brazil and Argentina have raised demand for U.S. supplies from overseas buyers, the U.S. Agriculture Department. In its latest monthly supply and demand report, the government cut its new-crop and old-crop ending stocks outlooks for both corn and soybeans by more than analysts had forecast.
As the soybean harvest gets under way in Brazil, analysts are having a clearer picture of whether the forecast record-setting crop will hit the century mark of 100 million tons despite hot and dry weather in Mato Grosso and northeastern Brazil as pods set and fill.
Over the last 25 years, the US farmer has become increasingly aware of the impact of South American agricultural output on the global supply of grains and oilseeds. For example, in recent years Brazil has risen to the number one position as an exporter of soybeans.
Financial and political turmoil that have Brazil on the brink of a depression is also contributing to one of the best years ever for domestic farmers. Economic stress and a weak currency has facilitated export revenue for everything from soybeans to beef to coffee.
Brazil's harvest in 2016 will reach 209.3 million tons, which is 0.5% less than in 2015 according to the estimates from the Brazilian stats institute, IBGE. The fall is related to less crops of oilseeds, cereals and legumes in the centre west of the vast country, which is also the main farming area, as well as in the north.
The Brazilian government increased its forecasts for what’s already expected to be a record season for soybean output and exports as farmers expand the planted area while yield prospects rise on above-average rainfall.