Brazil Acreage Not Fazed By Prices

[marketeye]

Apparently, the Brazilian soybean farmers will plow ahead with increased soybean acreage in 2014-15, despite a gloomy price outlook. Luis Vieira, a Brazilian freelance writer for Agriculture.com files this superb story. It's a bit surprising, don't you think? Oh, but some farmers are eliminating corn acres, completely?

Brazil soybean acres not seen dropping with prices.

In addition, I did a Skype interview with a Brazilian Market Advisor. He shared that farmers are really watching the markets, as they plan for their new season that starts in September. Plus, the corn that is being harvested right now, is only 30% sold.

Watch the full video here

Mike

[ECIN]

Morning Mike - But really - What is surpriseing ? There are like us , in a way , What do you do ? Plant what you might make money at or plant what you would lose the least money on ?  We have to plant something and just hope for a hale mary somewhere I guess .   

[marketeye]

ECIN,

As the market advisor mentions, $10 soybean prices really gets the attention of the Brazilian farmer. It will be an interesting planting intentions season in Brazil.

Mike

[ECIN]

LOL Mike - I just hope the bean price is just high enough so they DON'T plant any corn - or for a fact - any other country   

BTW Mike - Did you see where Champaign got 5.18 inchs of rain in 110 minutes Saturday ? and Mohomet  ( Just west of Champaign got 6 inchs . - Now that was a down pour .

[marketeye]

If Brazil goes bonkers again with its soybean acreage, and we have the kind of year that some are talking. You combine the USDA's estimates for world soybean harvest in 2014-15 and it's a whopping 305 million metric tons , compared to last year’s 284 mmt record. Whew!

Mike

[tree fmr]

I hope Brazil, and the entire world for that matter, plants fence row to fence row so they drive land prices down where I can afford to buy. 

Crazy to think, but.... What if prices stay low for an extended period, BTO's start selling land to pay the bills, and the land ends up with multiple owners?  So the country ends up with more family farms, specialty acres, etc.  I. E. the end of consolidation in land ownership.

Not saying it would happen Just an interesting thought.

[Shaggy98]

I would think selling land would be the last straw of any BTO.  Wouldn't it make more sense (and more cents) to relinquish some rented acres vs selling land?

[Hobbyfarmer]

Bto' s as a rule look at land ownership as a unnecessary expense and sequester of capital that could be used to rent many more acres.

Chances are very good that "sale" doesn't net any money . Just reduces the total debt at the lender. Might even just be a take away.

[Shaggy98]

I understand Hobby, it is a leverage tool.  Maybe I'm not completely understanding it, but seems to me selling land would to similar to talking that first step off a very short pier.

[tree fmr]

My thinking is along with what hobby says.  If the banker comes calling then land ownership is tied up capital that can be liquidated to keep the business in the green. 

No one likes the color red anyway.