The Brazilian state of Mato Grosso is facing storage issues in the face of projected increases in soyabean and corn output, AgriCensus reported market sources as saying.
With a total storage capacity of approximately 39M tonnes, the state – Brazil’s largest grains and oilseeds producer – did not have sufficient capacity to accommodate this year’s soyabean and corn output, which is expected to be double last year’s volumes, according to the 30 June report.
Producers had delayed soyabean sales since the start of the marketing year in the hope of getting better prices, AgriCensus wrote, and this had increased the challenge to accommodate the 39M tonnes of corn expected to be harvested this season, heightened recently with the second corn crop harvest progressing at a fast pace.
Against an uncertain backdrop in the soyabean market, Brazilian producers from Mato Grosso had around 8.5M tonnes of soyabeans remaining to trade – taking into account only the volume still with producers – according to data from the state’s agriculture institute IMEA.
A total of 78% of the soyabean crop, estimated at 40.5M tonnes, had been sold, compared to 88.2% at the same point the previous year, IMEA data published in June showed.
According to Brazil’s soyabean producers’ association Aprosoja, Mato Grosso needs to expand its static capacity to 125M tonnes until 2030 to keep up with the increase in production.