Spencer, IA: Brazil’s farmers are expected to plant a record 29 million hectares to soybeans this year as growers take advantage of attractive global and domestic prices.
In a report released Tuesday the International Grains Council said international and domestic price trends favor increased soybean plantings at the expense of corn.
The Council points to the ratio of new crop soybeans to corn futures on the Chicago Board of Trade at 2.8 compared to 2.2 a year ago. In addition, a 13% depreciation of the Brazilian real against the U.S. dollar over the past year makes soybean exports attractive.
The Council says domestic corn prices barely cover the cost of production, which will also be a factor in encouraging growers to shift to soybeans.
Brazil’s soybean plantings typically begin in October.