Brazil’s harvest could start in December thanks to early seeded crop

SAO PAULO, Nov 8 (Reuters) – Harvest is expected to start early in Brazil, as soon as early December because of rapid seeding.
That should send exports of soybeans and corn onto global markets sooner than normal this season, which could create headwinds for bullish positions on grains futures markets.
Widespread early spring rains over the world’s largest exporter of soybeans and second-largest exporter of corn allowed farmers to plant the summer crop weeks earlier than normal, and favourable volumes, frequency and distribution of rainfall point to bumper harvests.

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Brazil’s No. 2 soy and corn producing state, Parana, said on Tuesday that planting of the soy crop reached 80 percent of expected area, five percentage points ahead of a year ago. It added that favourable weather was helping field work.
The state’s farm economics department, Deral, also reported that the summer corn planting was nearly completed at 99 percent, up from 91 percent a year ago.
In Brazil’s No. 1 grain producing state of Mato Grosso, the farm institute Imea reported that favourable early rains during planting of the soy and corn crops has already put harvest on the radar by the end of the year, well ahead of last season.
“Add to the early start to planting that 90 percent of the soybeans sown in Mato Grosso are short-cycle or extra short-cycle maturing varieties,” said Carlos Cogo, head analyst of Cogo Consultants. “We could see harvest start in the end of December with significant volumes by January.”
Farmers in both states are keen to harvest as early as possible in order to plant the second of two corn crops before the rainy season gives way to Brazil’s May-September dry season.
Brazil’s poultry and pork industries will be pleased with the news as they try to rebuild capacity after cutting it by 15 percent earlier in 2016 in response to a shortage of corn, the main ingredient in animal feeds.
Analysts note it is early in the growing season and there is potential for a dry spell in the coming weeks when crops are filling pods or ears with beans and kernels. Also, too much rain could be counter-productive.
“Harvest will start just as the rainy season enters what are the wettest months of the year,” said Cogo, adding that high volumes of rain in January and February could delay field work and lower the quality of harvested grains.