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A survey carried out by DATAGRO Grãos shows that, until June 2nd, Brazilian sales of the 2022/23 soybean harvest reached 58.6% of expected production, well below the 69.9% in the same period last year, the 87.5% the record of the 2019/20 harvest and the average of the last five years, of 75.2%.
The monthly increase was 7.0 percentage points, below the 8.6 pp recorded in the previous month and the 7.8 pp of the normal average. “Confirming our expectations, and following the example of what we saw in previous months, these sales took place despite a new significant drop in prices”, highlights Flávio Roberto de França Junior, economist and research leader at DATAGRO Grãos.
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França Junior explains that producers were “forced” to sell to fulfill previously assumed financial commitments, mainly those related to funding expenses. “As well as due to the need to empty warehouses to prepare for receiving a record harvest of corn, which begins to enter the market from this month onwards”.
Considering the updated production estimate at 155.9 million tons, Brazilian soybean farmers have negotiated, up until the date analyzed, 91.4 million tons. In the same period last year, this negotiated production volume was relatively higher, but lower in absolute terms, reaching 91.3 million tons.
Harvest 2023/24
In the case of the 2023/24 harvest, the month of May was once again one of timid negotiations in soybeans, with only 6.5% of the expected committed production, a monthly increase of 2.2 pp, in line with the 2.1 pp in a similar period last year, but lower than the 3.6 pp of the normal average. Therefore, the pace remains far from the 11.7% committed in 2022, the 33.1% of the 2020/21 harvest record and the multi-annual average of 17.6%.
Corn
The DATAGRO Grãos survey shows that the sale of corn from the 2022/23 summer harvest in the Center-South of Brazil increased by 9.3 pp, below the normal average for the period, of 11.6 pp. As a result, sales reached 49 .2% of expected production, against 58.6% at the same time in 2022 and 64.4% on average over the last 5 years.
With a revised harvest forecast for 19.5 million tons, producers sold 9.6 million tons.
The commercialization of the region's 2023 winter harvest, revised to 92.9 million tons, reached 34.3%, against 26.7% in the previous survey, 38.6% on the same date last year and an average of the last 5 years of 51 ,3%.
Source: datagro
