62.5% of Brazilian soybeans harvested in 2020-21 commercialized, reports Datagro

A survey carried out by Consultoria DATAGRO has revealed that the commercialization of the 2020-2021 harvest of Brazilian soybean has progressed little in the last month, but has already reached 62.5% of the expected production until last March 5, above the 57.8% of the last harvest and previous record and the average of 49.1% over five years for the period. 

Regarding the previous report, released in February, the increase was only 2.1%, well below 8.3% of the normal advance pattern for the period. “Although slow, the movement confirmed our expectation, since in most cases February's figures were below January's levels. There were some limitations also due to the volume already excessively sold and concerns about the delay in the harvest,” highlighted Flávio Roberto de França Junior, Grain coordinator at DATAGRO.

Based on the current production forecast for the 2021 harvest, adjusted this month to 135.68 million tonnes, Brazilian producers have a total commitment of 84.90mt. In the same period last year, this volume of negotiated production was much lower, both in nominal and absolute terms, reaching only 73.49mt. 

2021/22 Harvest

According to the survey, Brazilian producers reached 11.0% of commercial commitment, well above the average of 3.8% for the last five years, but slightly lower than 11.8 % of the previous record, which occurred at the same time in 2020.  

The preliminary projection, which considers a 2.9% larger area, reasonably regular climate, and normal productivity, estimates that the Brazilian crop next year has the potential to reach 141.17mt, so they would have 15.50mt marketed in advance by Brazilian soybean farmers. The volume is slightly above 15.00mt from the same season in 2020.

Corn

The commercialization of corn from the harvest in the Center-South of Brazil advanced only 5.1%, below the normal average of 9.4%. Sales of 32.5% of the expected production, against 27.4% of the survey a month ago and 23.0% at the same time last year, following well above the average of 21.6% over the last five years.

Early sales for the 2021 winter crop in the Center-South are accelerating. Until March 5, there was 44.5% of the expected harvest committed by producers, against 42.8% in the previous month, 45.0% in 2020 and 32.8% in the average of the last five years. In addition to being lower than last year, it also falls below the record of 50% in 2016.

In the total of the two corn harvests, even with the losses in Rio Grande do Sul and Santa Catarina, they still result in a record total volume for 2021, with the current projection at 109.62 mt.