Soy Market: overview of the week in Mato Grosso - 24/02/2023

According to a bulletin released by IMEA, the soybean harvest for the 22/23 harvest in Mato Grosso has already exceeded half of the total area, reaching 60,03% of the areas completed by 17/02, demonstrating an increase of 15,93 p.p. compared to the results of recent weeks. For the first time during the harvest, the crops are harvesting in full swing, presenting a percentage of 2,20 p.p. above the average of the last five years, however, it is still 7,72 p.p. below that observed in the previous harvest.

The areas of Mato Grosso that stand out with the highest number of harvested areas are the north (73,83%), middle-north (71,21%) and west (61,29%), also showing an increase of 0,67% in the productivity of the areas harvested during this week compared to last week's results, estimating an average of 62,28 sc/ha.

The expectation for next week is over the northeast and southeast regions, as there are estimates of large amounts of rain for the area, from 55 to 65mm, according to NOAA (National Oceanic and Atmospheric Administration).

Argentina

The severe drought in Argentina has had an impact on the soybean market. According to the Cereals Exchange, 55,00% of the areas are in fair or poor condition, due to high temperatures and a lack of moisture in the soil. Producers in the country are even abandoning their areas and shortening the plant cycle, which directly affects productivity. Furthermore, the Cereals Exchange estimates that production will be 38,00 million tons, representing around 10 million tons less than what was initially expected for the 22/23 harvest.

This impacts the market as a whole, as it negatively alters the supply of by-products such as soybean oil and bran, as Argentina is the largest exporter of these. This opens up space for greater participation by Brazil as a supplier of these by-products and also by other producing countries.

Market

This week the soybean market in Mato Grosso showed a drop in prices, as shown by the following Tarken quotes:

Smile - R$ 152,73/sc (drop of R$ 2,61)

Nova Mutum - R$ 155,07/sc (drop of R$ 2,30)

Campo Novo do Parecis - R$ 154,88/sc (drop of R$2,33)

Sapezal - R$ 152,28/sc (drop of R$2,61)

Lucas do Rio Verde - R$ 154,01/sc (drop of R$2,29)