CONAB confirmed crop losses in Brazil due to the drought yesterday by dropping the production estimate 15 million metric tons, down to 125.5 million. That number is also being verified by Iowa Soybean Association officers on a trade mission in Brazil this week, including Spencer farmer Brent Swart. He says southern Brazil has been hit hard by the drought.
And with extended forecasts still looking hot and dry in southern Brazil, Swart says officials there anticipate further losses which are tough to quantify.
He says they’re currently in central Brazil and the country’s top producing state of Mato Grosso where they have been less impacted by drought and are looking at better yields of 53 to 55 bushels per acre. However, they won’t be able to make up for the losses in farther south.
Export customers including China are getting nervous about the South American crop losses and have been ramping up purchases of U.S. soybean in especially the last week. Swart says that is encouraging but it’s difficult to determine how much additional business the U.S. will get if the drought continues in not just Brazil, but Argentina.
