Brazil: Ending soybean stocks in 2016 – 2017 will be high

In 2016 – 2017 soybean yield in Brazil will be over 113 million tonnes (an average level according to most analysts), given 95.5 million tonnes in the previous season.

Although soybean export from the country is now very active, it is not enough to lower the expected high ending stocks for the season.

According to Safras & Mercado, Brazilian farmers sold 58% of their soybeans given 76% of the 2015-2016 crop at the same time in the previous season. The sales of the 2017-2018 crop, which will end in September, amount to 4.3%, 21% a year earlier. Current soybean prices are pretty low for farmers. In the hope that the situation in the United States will get worse, they will keep sales on hold.