Farm Futures
Brazilian farmers are a bit slower this year at advancing grain sales for new crop. Overall Brazil has sold about 15% of its 2021/2022 crop versus 25% last year at this time. Why?
First, anybody that has sold anything in the last 12 months probably regretted it as prices have continued to steadily climb higher. They have been rewarded for being patient. Second, as profit margins have improved, so have farmers’ cash reserves. This allows them to pay cash for more of their inputs rather than doing a soybean trade, which means locking a portion of their crop at harvest at much higher interest rates.