October 6, 2018
Brazilian soybean production, exports seen to reach record levels
Farmers in Brazil have expanded areas planted to soybeans amid expectations of continued strong prices for Brazilian soybeans. The US Department of Agriculture has thus forecast soybean production in the 2018-19 season to increase 3% to a record 123 million tonnes compared with the previous season.
Soybean exports are forecast also at a record, and in marketing year 2018-19, Brazil is seen to export 75.5 million tonnes of soybeans, a slight increase over 2017-18 on the back of robust demand from China, the USDA said.
The USDA forecasts 2018-19 soybean-planted area to increase 3% to over 36 million hectares compared with the 2017/18 official estimate.
In Parana and Rio Grande de Sul, two of Brazil's largest soybean-producing states, producers are already allocating 9 out 10 ha of arable land for soybeans during first season plantings, USDA observed.
"The increase in planted area for the 2018-19 crop is due, in large part, to producers' continued optimism about the valuation of Brazilian soybeans", USDA said, adding that since the start of the calendar year, local soybean prices rose markedly on the back of robust demand from China, as well as the weak Brazilian currency real.
The USDA said Brazil saw a surge in Chinese demand for its soybeans following the US-China trade tensions and following implementation of a 25% duty on US soybeans by China in April.