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Mato Grosso Bean Crop Called Down 21%

The secretary of agriculture of Mato Grosso, Brazil’s No. 1 soybean-producing state, says that this year’s crop will be the worst in eight years. The past few soybean production totals have been in the 760,000-ton range. This year’s crop is now expected to total only about 600,000 tons. The harvest is 97% complete in this northern state.

Excessive rain the second half of the growing season is reportedly the main reason for the sharp drop in production. Most key growing regions received over twice the normal rainfall amount.

The rumor mill on South American production problems is working overtime right now. More chatter is now being heard about severe damage due to the Asian rust fungus. At this point it’s difficult to sort out what’s fact and what’s rumor. Either way, it’s certainly keeping the bull market energized.