South America Calling

Monday marks the first day Brazilian farmers are allowed to plant 2014-15 soybeans.

Normally, dry soil conditions mean farmers have to wait a little after Sept. 15 to start fieldwork, but above-average rainfall in the first half of September across parts of Mato Grosso has allowed some to start today.

They though are a small minority, who take the risk on planting before consistent rain comes so that they can plant cotton in late December and early January.

The majority who plant corn after the soybeans have a little more time and will wait for more substantial rains to arrive.

According to Marco Antonio dos Santos, a meteorologist at the local Somar weather service, heavier showers will fall in western Parana later this week and in Mato Grosso next week.

But it will be safer for most to wait until heavy, consistent rains arrive and those will only  in the second half of October, slightly later than usual, said Santos.

Brazil's government bans soybeans in Mato Grosso and Parana between June 15 and Sept. 15 in order to limit disease and pest populations. 

Farmers will be planting early maturing soybeans over the next six weeks. These beans that have 90-100 days cycles not only provide enough time for farmers to plant a second crop, they also limit exposure to Asian rust and insects, limiting the number of applications needed.

Despite the slump in soybean prices, Brazilian farmers are still expected to increase planted area by 5%-6% and output by 9%-11% to 94-96 million metric tons this season, according to recent local consultancy estimates.

But, unlike in recent years, farmer enthusiasm is at a low ebb with prices low and margins wafer thin.

(AG)

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