SAO PAULO: Brazilian farmers have pre-sold an unprecedented amount of their new soyabean crop amid a rally in Chicago that compelled many to trade in their beans even before laying a single seed on the ground this year.
On Friday, agribusiness consultancy Datagro said farmers had sold 71.76 million tonnes of Brazil’s most prized export commodity through Nov. 6, corresponding to 53.4% of the estimated output for the current planting cycle.
A drought in parts of Brazil delayed soyabean planting this season, but analysts and the government believe the country will reap around 135 million tonnes in the 2020/2021 season, which would be a record output. Soya is normally sowed around September and October in the South American nation, and begins to be harvested around January and February.
“The confirmation of record soyabean prices kept the market active market and fueled buyers’ interest,” said Flávio de França Junior, a Datagro analyst. He said demand is particularly strong for domestic processing.
Corn trade is also ahead of schedule thanks to export market demand and internal purchases by Brazil’s booming meat-packing industry, which sells pork, chicken and beef worldwide and use the cereal as livestock feed.—Reuters
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