Brazilian January soybean exports plummet to 7-year low on delayed harvest: sources

New Delhi — Brazilian soybean exports in January has plummeted to the lowest level since 2014 as farmers are facing tight supply situation due to delayed harvest, market sources told S&P Global Platts Feb. 2.

Brazil exported 49,499 mt of soybeans in January, compared with 1.39 million mt in the same period last year, according to a foreign trade department report released Feb. 1.

Backed by a weak real and robust demand from China, the Brazilian farmers sold over 80% of their stocks in H1 2020, analysts said.

The slow pace of soybean's new crop harvest has further deepened the tight supply issue.

Brazilian soybean harvest for 2020-21 marketing year, which starts February 2021 to January 2022, has made the slowest progress in a decade as unrelenting rains hampered field activities, agricultural consultancy AgRural said Feb. 1.

Soybean farmers in the South American nation had been able to harvest only 1.9% of the projected acreage as of Jan. 28, compared with 8.9% last year, the consultancy said.

Brazilian new crop soybeans face delays since the planting season began in September.

Typically, the soybean sowing begins mid-September in Brazil. However, extremely dry conditions and high temperatures lowered the soil moisture extensively across the country. As a result, planting of the oilseed in Brazil began at the slowest pace in a decade.

The Brazilian soybean supply situation was seen supporting US oilseed prices.

CBOT soybeans March futures contract was trading at $13.6650/bushel at 0559 GMT Jan. Feb 2, a six-and-a-half year high.

Global soybean prices are likely to rise in 2021 on tight supply, coupled with strong demand from China and delayed harvest in South America, analysts said.

Although the recent downpour has crippled the Brazilian soybean harvesting, it was seen as a boost for the late-planted beans.

Brazil is expected to produce an all-time high of 131.7 million mt soybeans in 2020-21 due to good crop conditions across the region since mid-December 2020, according to AgRural.