South America Calling

Forward sales of Brazilian soybeans were relatively sluggish in November.

As of Nov. 30, Brazilian farmers had sold 39% of their projected 2013-14 soybean crop, up five percentage points on the month but well back from the 59% sold at the same point last year, according to AgRural, a local farm consultancy.

Over the last two years, farmers have sold much more of their crop ahead of the harvest but this year are reverting back to a slower pace as most are well capitalized and have been left unimpressed by prices since August.

Still, sales are ahead of the five-year average of 35% for the end of November.

Business has started to pick up in northern Mato Grosso and western Parana, where the harvest is just over one month away, said AgRural. But farmers in these regions will only start selling higher volumes if local prices return to August levels, when a weak Brazilian real and a hike in Chicago futures created a spike.

(AG)

© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.