Brazil Soya Planting Down
9 November 2006 The area planted to soybeans in Brazil is estimated to be down 7% to a low (by Brazilian standards) 20.5 million hectares (Ha), reports the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS). The largest drop in area is projected for the state of Mato Grosso, which is expected to lose more than 800,000 Ha to other crops, including marginal land where soy was planted in recent years that is going back into pasture.
In Mato Grosso and other parts of the Center-west, maize and sugarcane are taking acreage from soybeans. The trend towards sugarcane also is in the southeast of Brazil. The South is the only region expected to maintain its soy area.
The 2006/07 Soybean crop is 25% planted as of Nov 1, and the majority of those beans already planted are located in Mato Grosso (42% planted), Mato Grosso do Sul (32% planted), Goias (30% planted), and Paraná (25% planted). Planting in Brazil is ahead of schedule overall, since the average progress for Nov 1 is historically only 15%. If planting continues to go at a faster rate than earlier years, an early harvest should help limit the threat posed by Soybean rust disease.
Due to heavy rains that fell in the last part of October throughout much of Brazil, farmers took advantage of dry days (or, in some cases, hours) to get their beans in the ground. Most states are above their monthly averages for rainfall, but the climate has been favorable in most areas of the country for planting.
Improvements in international soybean prices are not likely to create any substantial change in planting intentions for this harvest, since growers’ decisions were made before the positive turn in soy prices. Credit limitations, especially for growers who are carrying debt from previous years, also have impacted this season significantly.
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