2022/23 Soybean planting in Paraguay nearing completion

The spring weather has been generally cooperative for planting and farmers in Paraguay are in the process of wrapping up their 2022/23 soybean planting. Planting started in late August and proceeded quickly during September. Frequent rains in October slowed some of the later planting, but by that time, most of the soybeans had already been planted. Soybean planting generally starts earlier in Paraguay compared to neighboring Brazil and the earliest planted soybeans will be ready to start harvesting about December 15th.

The heavier rainfall during October helped to recharge the depleted soil moisture after a prolonged dry season and has resulted in favorable conditions for soybean development. The 2022/23 soybean production in Paraguay is expected to be approximately 10 million tons. The 2021/22 soybean production was expected to be approximately 10 million tons, but the worst drought in recent memory reduced the production to only 4.2 million tons.

Paraguayan farmers have been slow to forward contract their anticipated soybean production because they want to wait until they are assured of the production. Approximately 16% of the soybeans have been sold compared to about 30% average. Some farmers were not able to fulfill their forward contracts from last year and they certainly do not want that repeated.

Additionally, this is the third consecutive year of La Nina conditions which are generally associated with dryer than normal conditions in southern Brazil, Paraguay, and Argentina. It is currently very dry in Argentina and the Brazilian national Weather Service is forecasting dryer than normal weather during November in the neighboring Brazilian states of Parana, Santa Catarina and Rio Grande do Sul which are right next door to the main soybean producing areas of Paraguay.

November and December will be the critical reproductmonths for soybeans in Paraguay, so farmers will probably wait to do any further forward contracting until they see how the weather develops in November.