Brazil Expects Record Soybean Crop

soybean futures


According to a report from the Foreign Agricultural Service of the US Department of Agriculture (USDA), Brazil is anticipated to produce a record amount of soybean in 2022 and 2023, with yields for early harvested fields that are higher than anticipated.

Based on a yield of 3.533 tonnes per hectare, the estimated quantity of production is 153 million tonnes.

According to the USDA, producers are also reporting a lack of sunshine between rainstorms, resulting in a “winter-like” weather pattern.

It stated that “if this continues, soybean yields have the potential to significantly decrease because the soybean becomes too moist and does not have the ability to dry,” which would result in a decrease in exports and a decrease in quality due to mold.

Also Read : US Department Of Agriculture Report For Wheat, Soybean, Corn Grains In Annual Outlook 2023-2024

Based on favorable production, anticipated decreased production on the international market, particularly in Argentina, and a returned demand from China, soybean exports are estimated to be 97 million tonnes.

According to the USDA, stocks will remain extremely low, hovering around 0.5 percent of domestic supply for 2021-2022, and even lower for 2022-2023, due to China’s “voracious” appetite for Brazilian soybeans.

The USDA stated, “Historically, this is the lowest level that stocks have ever reached in Brazil.”

Expect no restrictions on exports. Instead, traders and manufacturers will concentrate on sales in order to take advantage of price increases.

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