Sowing: On September 24, we began to slowly sow rice in block F as we didn’t have optimal soil conditions before (muddy ground). As the season is expected to be very dry, we are only planning for now to sow 560 ha of rice – subject to weather conditions, we will see later with our partner GPSA if we could add block G (450 ha more).

Once rice sowing will be completed, we will start to sow soybean. 1,100 ha have been developed and will be sowed with soybean for the 1^st time in October. Here also – subject to weather conditions, we will see with our partner GPSA if we could reallocate 460 ha of rice surface to soybean. Our options depend on weather conditions (rains) and whether or not we will be able to put water from the river or not.

Sowing period started later this year as all producers have to face extra delays in the delivery of their inputs and seeds by barge as the traffic on the Parana River is very slow because of the shallow draft (see previous post). In addition, increases in fuel and fertilizer over the past year will have a strong impact on production costs.

In the US for example, the rice planted area will significantly decrease this year due to the poor gross margin of the activity. Meanwhile some Asian producers like Vietnam, which have recorded better yields than expected, are currently facing disruption due to container shortages and pandemic-led restrictions. We are expecting another complicated season, mainly due to weather.