Corn and soybean farmers in Brazil hit by huge losses amid droughts

The agriculture sector in Brazil’s Rio Grande do Sul is expecting $6.6 billion in soybean and corn losses due to dry and warm conditions

Truck body full of freshly harvested soybeans travelling on a road

©

Lucas Ninno/Getty Images

Soybean and corn losses due to dry and warm weather conditions in the southernmost Brazilian state of Rio Grande do Sul are BRL36.1 billion ($6.6 billion), according to estimates from agriculture and livestock cooperative FecoAgro/RS released Tuesday, Janaury 25.

This is the second estimate released by FecoAgro/RS this year - the cooperative now pegs the monetary losses related to the drought more than BRL16 billion higher than in figures it released January 4.

Expected soybean losses amount to BRL29.5 billion while the summer corn output is an estimated BRL6.6 billion below the crop’s initial potential, according to FecoAgro/RS.

“According to data from the cooperative technical network RTC, the soybean loss amounts to 48.7% of the crop, overpassing 70% in some areas,” the cooperative said in a press release.

More than 175,000 corn and soybean farmers have been hit by the droughts in Rio Grande do Sul so far, according to the state’s agriculture agency, Emater/RS.

Although Rio Grande do Sul has registered much-welcome rains over the past couple of weeks, the volumes have been far from enough to solve the hydric stress situation in the state.

“Rainfall volumes were registered across all administrative regions, but they were rather irregular and scarce in some regions,” Emater said in its report dated January 24.

In September, Emater/RS had estimated the state’s 2021-2022 soybean output at 19.9 million tonnes - a figure that will, however, be unavoidably and significantly downgraded when it revises its estimates in March.

Rio Grande do Sul produced 20.4 million tonnes of soybeans in 2020-2021; it was Brazil’s third-largest exporter in the 2021 calendar year, with 12.2 million tonnes shipped.

Keep up to date with the news, analysis and market trends shaping the agricultural landscape, visit our dedicated grains and oilseeds page.

What to read next
The new proposal would help restore approximately 500 million gallons of blending volumes previously waived by the agency in 2016
Our managing editor answers questions about corn price volatility drivers and changes in trade flow
Government confirms a new soy dollar scheme from Monday, November 28
Government poised to reduce the number of HBE credits in circulation and promote higher rates of physical blending in the road sector
The Russian invasion and the uncertainty around the grain corridor deal present serious challenges for grains and oilseeds producers
Midwest soybean oil prices moved lower for the first time in four weeks
Explore our agriculture products
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed