Brazil: New Crop Soybeans By Christmas
The window of opportunity for US farmers to have the world soybean export market to themselves is getting ever-shorter.
Not only is harvesting in the US well behind schedule, the early arrival of rains in South America saw Brazilian farmers in Mato Grosso (which accounts for around a third of national production), get off to a flier mid-September.
Taking advantage of significant front-end premiums to be had at the time, many savvy growers in the region planted fast maturing soybean varieties.
Rains have continued to be beneficial since these early beans went into the ground, and reports suggest that some farmers will be harvesting beans before Christmas this year.
That may be a little bit of a two-edged sword, as it may trim a bit off yields. It will however enable them to make the most of the local front-end premiums and get a timely 2nd crop of corn into the ground for harvesting later in the summer.
Plenty of reports I am reading suggest that the usage of this strategy will be widespread this season. That may suggest that the current Brazilian soybean production estimates of around 64 MMT may be a tad optimistic. It would also suggest however that China might switch it's attention away from the US a little earlier than normal, and in addition lead to an increased corn crop in 2010.
Not only is harvesting in the US well behind schedule, the early arrival of rains in South America saw Brazilian farmers in Mato Grosso (which accounts for around a third of national production), get off to a flier mid-September.
Taking advantage of significant front-end premiums to be had at the time, many savvy growers in the region planted fast maturing soybean varieties.
Rains have continued to be beneficial since these early beans went into the ground, and reports suggest that some farmers will be harvesting beans before Christmas this year.
That may be a little bit of a two-edged sword, as it may trim a bit off yields. It will however enable them to make the most of the local front-end premiums and get a timely 2nd crop of corn into the ground for harvesting later in the summer.
Plenty of reports I am reading suggest that the usage of this strategy will be widespread this season. That may suggest that the current Brazilian soybean production estimates of around 64 MMT may be a tad optimistic. It would also suggest however that China might switch it's attention away from the US a little earlier than normal, and in addition lead to an increased corn crop in 2010.