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May 14, 2021

Farmers in Mato Grosso have Sold 83% of their 2020/21 Soybeans

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

According to the Mato Grosso Institute of Agricultural Economics (Imea), farmers in Mato Grosso have sold 83.4% of their 2020/21 soybean production, which was up 4% from a month earlier.

The end of the soybean harvest and record high soybean prices during April was the stimulus behind the sales. The average soybean price in Mato Grosso during April was R$ 162.90 per sack (approximately $13.71 per bushel), which was up 5% for the month.

For the 2021/22 soybean crop, farmers in the state have sold 27.7% of their anticipated production, which was up 2.9% for the month. This is about 9.5% less than what farmers had forward contracted last year at this time.

During the 2020/21 growing season, farmers missed out on potential revenue because they sold too much of their crop before prices started to soar early in 2021. At the time, farmers were happy to lock in what they thought was a good price for their soybeans. Since then, soybean prices in Mato Grosso and the rest of Brazil have nearly doubled.

Therefore, farmers in Mato Grosso are more cautious with their forward sales this year hoping for even higher prices.

Nationwide, Brazilian farmers have sold 71.8 of their 2020/21 soybean production compared to 80.6% last year and 64.3% average. For the 2021/22 soybean crop, Brazilian farmers nationwide have forward contracted 15.2% of their anticipated production compared to 28.2% last year and 11.6% average.