Brazil Soy Harvest Hit by Floods

The outlook for the soybean harvest in Rio Grande do Sul of Brazil is deteriorating swiftly after torrential rain flooded fields, with about a quarter of the beans still to be harvested.

Rio Grande do Sul was on track to become the second-largest producer in Brazil behind Mato Grosso. Farm Policy News says the impact of the downpours left entire cities and farms underwater in the state, which could cause up to a 15 percent drop in harvest in Rio Grande do Sul. Harvest predictions in the state range between 19 and 20 million metric tons and will include qualitative and quantitative losses.

In most affected areas, estimates range from 70 to 80 percent of the soybeans suffering some level of damage. The Rio Grande port has not suspended operations, but handling is notably slower. Experts in Brazil said the market will soon discover that USDA overshot its Brazil harvest predictions.