July 7, 2015
Brazil to see higher soybean plantings due to higher prices
Prices for Brazil''s soybean are on the rise, thanks to the weakening real currency, higher Chicago soybean futures and the "good pace" of exports, Cepea reported. The research institute added that local prices are reaching close to the "highest level" for 2015.
The trend effectively diminished the notion that Brazilian farmers will reduced sowings for first time in 10 years; instead, farmers will be more driven by higher profits to raise cultivations and contribute to Brazil''s dominance as the world''s second largest soybean producer, tailing the US.
Moreover, worries over inadequate credit, costlier inputs and equivocal futures had since been assuaged, with farmers less likely to be inhibited in buying inputs for the new growing season, said crop analyst, Michael Cordonnier.
Earlier this year, prices were seen at their lowest, rousing the possibility of declining soybean acreages for the 2015-16 season. Estimates had since been upgraded, according to Cordonnier, noting that cultivations are now expected to swell by 1-5% to a record high.
Soybean could also beat local corn sowings in some areas, due to the bigger involvement of cost and fertiliser input demanded by corn. Corn plantings is also likely to be held back by higher interest rates of loans offered by the latest harvest plan, the International Grains Council said.
As of last week, Cepea put the final soybean values at the port of Paranagua at around US$10.30 per bushel. The figure represents a rise of more than 6% from mid-June.