Crop Protection South America Monthly Report

According to the latest report of US Department of Agriculture (USDA), the production of soybeans in 2012/2013 in the US is estimated to be 71.5 million tonnes, down 14% from 2011/2012 due to the drought. Meanwhile, Brazil is set to harvest a record 82 million tonnes of soybeans in 2012/2013, up 22% from 2011/2012, according to Companhia Nacional de Abastecimento (Conab, a Brazilian statistical agency). This puts Brazil within reach of overtaking the US as the top soybean-producing country in the world. 

According to the Crops & Markets in Brazil, the volume traded in advance already reaches 43% of the soybean production in 2012/2013. It seems that the next season promises to be one of the largest ever, with excellent prospects. However, along with the boost of soybean planting, Brazil farmers may face the shortage of seeds and agrochemicals and infrastructure limitations due to the lack of planning.  

In fact, the Brazilian government has extended the credit line for winter corn planting to encourage farmers to plant more corn and farmers could make as much money out of corn as summer soybeans. The problem is that the El Nino weather phenomenon looks weak, which is not a disaster for the soybean crop but reduces the chances for planting corn afterwards. As a result, farmers would be pushed back to soybean planting.