Brazil's central-western state of Mato Grosso is expected to harvest its second-largest soybean crop next season, with planting set to begin in September, as a depreciating currency in the face of the pandemic-induced slowdown provides farmers with more cash to expand their acreage.
The state's 2020-21 soybean crop is estimated at 34.7mn t, slightly below the record 35mn t harvest of the current 2019-20 cycle, local Institute of Agricultural Economics (Imea) forecast yesterday.
Acreage is expected to increase by 2.3pc to a 10.1mn hectare (25mn acres) record. The increase is higher than the annual average increase of 1.6pc observed in the past five seasons and is supported by record yields in the current cycle, historic price levels for the commodity, anticipated trading of the future production and inputs and improvements in Brazil's logistics, which is vital to drain off the local harvest.
Record Brazilian real-denominated soybean prices have reflected the real's 38pc depreciation against the US dollar so far this year. The depreciation has been fueling Brazilian shipments and helping to cushion the fallout from Covid-19 pandemic and associated economic slump. The virus has not impacted field activities in the South American country due to the schedule of sowing/harvesting and safety measures.
Regarding the 2019-20 cycle, whose harvest has already been concluded, Imea said that adequate rainfall and luminosity helped plantations after a delay in planting back in September-October due to drought.
Imea has also revised its estimates for the 2019-20 corn and cotton lint harvests.
For corn, whose harvest is expected to kick off by the end of May, production is seen at 32.7mn t, up by 1.4pc from the year prior. But plantations have been hampered by drought and inadequate soil moisture in some regions of the state, Imea said. For this reason, yields are expected to fall by 5.2pc in 2019-20 over 2018-19, but that decrease will be partially offset by acreage increase of nearly 7pc.
The 2019-20 cotton lint output was pegged at almost 2mn t, up by 1pc from the prior year, with the planted area up by 1.3pc at 1.1mn ha.
