- Rio Grande do Sul has achieved a record soybean harvest, increasing production by 68% and becoming Brazil’s second-largest producer.
- This bumper crop is expected to compensate for severe losses due to drought in Brazil’s central regions, especially Mato Grosso, affected by the El Nino weather pattern.
- Despite the record yields, sluggish market prices have led to high volumes of unsold stocks, impacting farmers and local cooperatives financially.
Southern surge to offset central losses
The southern Brazilian state of Rio Grande do Sul is experiencing a record soybean harvest this season. According to the national harvesting agency Conab, production has increased by 68%, making it the second largest producer in Brazil after Mato Grosso. This increase is expected to counteract the significant losses due to drought in the central and western regions of the country, particularly in Mato Grosso, where the El Nino weather pattern has severely affected yields. Emater, another state harvesting agency, confirms a 71.5% increase in production to 22.25 million tons.
Market dynamics and local impact
Despite the bumper harvests, local demand did not keep pace, which meant that considerable stocks remained unsold. Elcio Carlot, a farmer in the Sarandi region, noted that while productivity per hectare has improved dramatically (from 40 to 60 bags), sluggish market prices have dampened sales enthusiasm. Prices at the local cooperative Cotrisal are lower than in previous years, and Carlot has only sold a small part of his production. Cotrisal itself is struggling with high stock levels, taking up more than 40% of its storage capacity, and stocks are expected to remain similarly high until the end of the year if prices do not improve.
