South America Calling

The dramatic slide of the Brazilian real last month was enough to stimulate substantial soybean sales, AgRural, a local farm consultancy, said late Friday.

Farmers had committed 37% of their 2015-16 soybean crop as of Sep. 30, up from 30% at the end of August and well-ahead of the 13% sold at the same stage last year, it said in a release.

After a quiet August, business picked up again in September across Mato Grosso and the rest of the center-west with the percentage committed rising nine percentage points to 42%.

"The advance (in sales) would have been better were it not for (slumping) dollar prices," said AgRural.

Part of the center-west crop sales is normally done in dollars.

In Sorriso, center-north Mato Grosso, the average price rose 5% in reals to R$62.45 per 60-kilogram bag ($7.20 per bushel), while the average dollar price slid 3%.

In Rio Verde, Goias state, soybeans for March delivery were quoted at R$72.00, up 9% on the month.

In the south, farmers had committed 29% of their crop, up five points on the month and much higher than the 7% registered at the same point last year.

Southern farmers were more cautious, in part because it is their custom, but also because they are well-capitalized after an excellent 2014-15 harvest and are waiting to see if the real weakens further.

The Brazilian real has fallen 33% against the dollar in 2015 and declined 8% in September alone.

Brazil is expected to produce a record crop of around 100 million metric tons in 2015-16.

Alastair Stewart can be reached at alastair.stewart@dtn.com

(ES)

© Copyright 2015 DTN/The Progressive Farmer. All rights reserved.