Soybean planting in Brazil starts on September 15, but it is starting this year under pressure from prices, tight credit, and dry weather. There are a few worries about the quality of available seed as well. Crops are not actually allowed in fields before September 15 as the country tries to cut down on the chance of disease and pest pressures. A U.S. Department of Agriculture forecast of a 1 million hectare increase in soybean plantings was almost cut in half recently, as the USDA now forecasts a rise of 600,000 hectares. The USDA downgraded the forecast because, even though soybean prices are higher in Brazil than last year, they’re not as strong as the surge corn prices right now, which takes away some incentive to plant soybeans.
The USDA’s comments follow a recent report regarding tight credit conditions amid Brazil’s worst recession in decades. Reports say the farmers in Brazil are in a troubling financial spot right now after a bad growing season last year. Many farmers are having trouble repaying their production loans and filling forward grain contracts.
Source: NAFB News Service