Inna Stepanenko

Brazil’s soybean harvest, expected to be the country’s largest on record, is progressing slower than LY and the historical average as persistent rains disrupt fieldwork in key agricultural regions.

According to Conab’s latest report of 26 Jan, only 6.3% of the soybean area had been harvested, compared to 10.4% at the same time last year. The delays are also slowing the planting of second-crop corn, with just 1.4% of planting completed, well behind last year’s 10.3% progress. In Mato Grosso, Brazil’s largest grain-producing state, corn planting stands at just 1.2%, a steep decline from 18% last year.

This lag in fieldwork has raised concerns across agricultural markets about potential yield losses and logistical disruptions for exports.

Farmers and traders warn of risks

Farmers and traders are growing increasingly concerned about the impact of soybean harvest delays in key states such as Mato Grosso and Goiás, particularly regarding reduced second-crop corn planting and productivity losses. Jackson Hara, an agronomist at Agro Defender Comercial e Industrial LTDA, a Brazilian farm enterprise, warned that if heavy rains persist, soybean production losses could also occur.

A recent period of sunny weather has helped speed up harvest progress, but Hara highlighted the risk of soybean production losses if the rainy conditions return. However, overall soybean production prospects remain strong, and expectations of overproduction remain intact, he added. "Regarding soybeans, the production potential is excellent in all the states of the Midwest, North, and Northeast. Only the South is facing drought-related challenges."

Traders are also feeling the impact. Nathan Furlan, a trader at BTG Pactual, a Brazilian financial company, stated that the delayed availability of early soybeans is disrupting export logistics, with delays affecting cargo formation at ports. "Harvesting has improved in recent days, particularly in Mato Grosso, but the overall pace remains behind schedule," Furlan said. "Meanwhile, Paraná is experiencing smoother progress, with deliveries to ports on track and ships already scheduled. However, Rio Grande do Sul is struggling with significant drought-related production losses, estimated at 2 MMT."

Logistical bottlenecks and rising costs

Julio Lombardi, Head of Origination and Trading at Biond Agro, a Brazilian agricultural consultancy, stated that excessive rainfall in Mato Grosso is causing significant knock-on effects. The compressed harvest window is leading to increased demand for trucks, pushing transportation costs higher. Meanwhile, delays in transporting soybeans from farms to ports are worsening congestion, with vessels waiting longer for cargoes that were originally scheduled for early-season shipments, Lombardi explained.

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