By Roberto Samora
SAO PAULO (Reuters) -Coamo, the largest farmer cooperative in Brazil, expects to receive 3.6 million tonnes of soybeans from the 2021/2022 crop, 40% less than initially projected amid crop failure caused by a drought.
In an interview with Reuters on Thursday, Coamo Chief Executive Airton Galinari said the company had expected to receive 6 million tonnes from farmers, a volume that would exceed the approximately 5.1 million gotten last year.
This year’s projections will not be confirmed, he said, as the cooperative’s farmers, based in Parana, grow grains in the very regions hit by hot and dry weather.
Badly affected states include Parana, Santa Catarina, Mato Grosso do Sul, as well as Rio Grande do Sul.
Coamo processes grains sourced from farmers to make products sold on domestic markets. It also sells them on export markets. It trades in crops including corn, wheat and soybeans.
On Thursday, Brazilian food supply and statistics agency Conab slashed its estimate for soybean production by some 15 million tonnes in the 2021/2022 cycle, citing dry whether in the South American nation.
In spite of Brazil reaping a smaller soy crop overall, high prices should help farmers – at least those with any beans left to sell — offset losses amid strong demand from countries like China.
Galinari said domestic soybean prices rose from 130 reais per 60-kilo bag last year to 188 reais per bag currently, an increase of more than 40%.
Not all Brazilian states were affected by adverse weather, with production in Mato Grosso, the top grower, seen at almost 40 million tonnes
This is very close to Argentina’s estimated soy output for the season, pegged at between 40 and 42 million tonnes.
(Reporting by Roberto SamoraWriting by Ana Mano; editing by Diane Craft)
