Mato Grosso Bean Planting Pace Continues Ahead of Schedule
Mato Grosso, Brazil’s largest soybean-producing state, released their planting progress report Friday that showed 68.8% of the crop is in the ground.
This is about 28 points ahead of average and 25 points faster than last year at the same time.
A large portion of last year’s soybean crop was planted later than average thanks to drought-like conditions in different parts of the country, including Mato Grosso.
Recent rainfall has aided the planting season, alleviating some of the dryness concerns that had been present for Brazil for several months, which took off several million tonnes of the winter corn crop.
Since about August, cumulative rainfall for Brazil’s soybean area is near the average and temps recently have been trending near normal.
Generally, the planting season so far is off to a great start for the exporter.
FBN’s Take On What It Means: Faced with the prospect of a second consecutive La Nina, Brazilian producers are taking advantage of the near-normal start to the year. The wet season in central Brazil came almost on time, and scattered showers in Mato Grosso in September increased in October across much of Brazil’s growing regions. Argentina’s weather pattern however continues to exert La Nina-like conditions, though it may be starting to take hold in southern Brazil. Central Brazil, however, seems to be in good shape.
U.S. Cattle on Feed Posts Second Highest October 1 Inventory
The USDA released the monthly Cattle on Feed report Friday after the market closed.
The report showed the number of animals in feed yards as of October 1 at 11.55 million head, down 1% from last year’s 11.72 million head.
While the figure is the second highest October 1 inventory, it is the fourth straight month with year-over-year declines since June.
The inventory included 7.07 million steers, which was down 3% versus last year.
Heifer inventory came in at 4.49 million, up 2% from last year.
FBN’s Take On What It Means: Live cattle futures fell 1.87% last week, as markets have largely been stagnant. Processing capacity has been constrained by labor shortages, which have in turn constrained cash prices. However, the report shows a declining herd, which could play more of a role in the marketplace whenever processing capacity returns to normal.
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