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March 9, 2021

How do We Account for the Poor Quality Soybeans in Brazil?

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The director of the consulting firm Patria AgroNegocios, Matheus Pereira, stated that during the first seven days that mature soybeans remaining standing in wet weather without being harvested, the seeds lose 1% of their weight per day. After seven days, the seeds lose 2% of their weight per day.

The problem in Brazil is how to account for the poor quality soybeans being harvested in parts of central and northern Brazil. Poor quality seed weigh less than normal seed and the poorer the quality, the lighter the weight. Some of the poorest quality soybeans may never enter the commercial market because they may be rejected by the grain company. High-moisture poor quality soybeans could also deteriorate very quickly in storage, so eventually you could take out fewer sacks than what you put in storage.

I am not an expert on soybean crushing, but I would assume that poor quality soybeans will not yield the same amount of meal and oil as high quality soybeans. Therefore, a processor would have to crush more poor quality soybeans in order to produce the needed amount of meal and oil.

All of the problems with poor quality soybeans may not show up on the balance sheet for many months, but eventually a greater domestic disappearance will probably be the result of these poor quality soybeans.

Soybean producers ask for emergency deceleration - The Soybean & Corn Producers Association of Mato Grosso met with the Governor of Mato Grosso late last week to request an emergency deceleration for 51 municipalities in the north and northeastern regions of the state due to the persistent rains. They indicated that some farmer's losses could be as high as 50%.