March 8, 2023

Brazilian soybeans selling slower compared to past years

Agribusiness consultancy Safras & Mercado said Brazilian soybean sales have lagged compared to last year and the historical average, Nasdaq reported.

The consultancy said the sale of Brazilian soybeans has reached 35.4% of the estimated production in the 2022/2023 cycle, lower compared to the 48.5% sold last year, while five-year average for farmer selling in the period is 51.7%.

Data from the Safras & Mercado showed the total amount of soy already traded in is just under 54 million tonnes, but Brazilian soybean growers may produce an estimated record harvest of 152.43 million tonnes this year.

Delays in the harvest of this year's crop and the disruption of field work by rain in some states are two factors that may be causing slow farmer sales in the largest supplier of oilseed in the world.

Safras & Mercado did not elaborate on why forward selling of next season's soybeans are falling behind.

The consulting firm estimates that the soybean crop that Brazilian farmers will plant beginning in September of next year will produce 1.6% of the total volume of production.

This is below the 7.1% from March 2022 and the 10.6% five-year average, Safras & Mercado said.

-      Nasdaq