MercoPress. South Atlantic News Agency

Brazilian record corn crop stored in the open; 11 million tons of soybeans remain unsold

At the end of May, about 11 million tons of soybeans were still in the hands of Brazilian farmers, up from 5.5 million a year earlier

Warehouses in Brazil are still full of soybeans, harvested just a few months before corn. In the state of Mato Grosso, soybean production was high this season, but at the same time sales are slower than usual, leaving warehouses with no space for corn, according to Cleiton Gauer, superintendent of the Mato Grosso Institute of Agricultural Economics (IMEA).

While it is not uncommon for crops to be stored in the open air when indoor capacity is to the brim, this has not been seen on such a scale for at least two years. As Mato Grosso’s massive corn harvest progresses, farmers and operators face a lack of space.

The buildup threatens to put further pressure on corn and soybean prices, which are already falling in Chicago futures markets amid promising weather in US croplands. Corn prices have fallen to their lowest level since before Russia invaded Ukraine. Likewise, soybeans fell to the lowest level since January.

On the other hand, the decrease in futures markets offers hope that food inflation can recede in the coming months, even with historically high prices.

At the end of May, about 11 million tons of soybeans were still in the hands of Brazilian farmers, up from 5.5 million a year earlier, according to Daniele Siqueira, an analyst at AgRural. This month, soybean sales picked up on a weaker Real, improving demand and pressure to move the oilseed out of warehouses, she said.

Another reason for the lack of space is the pace of harvesting in Mato Grosso. As of June 17, it was 27% complete, up from 4% a year earlier and a five-year average of 14%, according to Imea. As a result, Mato Grosso state should harvest 39 million tons of corn, an increase of 20% compared to the previous crop. This corresponds to about a third of Brazilian production, which could reach a record 115.2 million tons this harvest, according to Conab.