South America Calling

Soybean planting is proceeding at breakneck pace across the key Brazilian grain region of western Parana this week after heavy rains last week created perfect sowing conditions.

Indeed, the two areas I visited this week should be finished by next week.

"The weather has been perfect so far. We can't really ask for any more," said Enio Pedde, who has planted all 560 acres on his farm in Marechal Candido Rondon, western Parana

This region plants very early. Parana as a whole had only sown 17% of the forecast area as of Tuesday, according to the state agricultural department, but other parts of the state have also got the rains and the early outlook for the southern crop is very positive.

And the state is ahead of the rest of Brazil. Planting nationwide is currently at about 5% complete as farmers in Mato Grosso, the main early-planting soy state, have seen fieldwork delayed by a lack of rain.

Planting is going so quickly in western Parana because farmers have invested heavily in machinery over the last few years. In Marechal Candido Rondon, for example, farmers managed to plant nearly all their soybeans in two weeks.

"Large farmers buy big planters and then lend them out to the smaller farmers. It has become quite common here," explains Enoir Primon, inputs director at Copagril cooperative in the city.

The early planting will give ample time for a second crop of corn after the soybean harvest in late January, early February.

Soybean planted area in this well-established grain region will rise a couple of percent this year, principally at the expense of summer corn.

And with costs stable or slightly lower than last year in this region that has pretty good access to Paranagua port, margins on soybeans look promising.

"Farmers bought the majority of their inputs in the first half of the year, before the Brazilian real devalued against the dollar, and so feel they are in a strong position, explained Sergio, Dalla Costa, crop marketing manager at Coopavel, another major cooperative in the region.

Indeed, farmers would probably have planted more soybeans, if there were any more acres available.

(AG/SK)

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