February 22, 2008

Brazil may dominate world soy production this year

Global demand for soy is expected to rise in 2008 and it will be producers in Brazil that meet most of increased demand, US Department of Agriculture Chief Economist Joseph Glauber said Thursday (February 21).

"South American soy production is expected to expand more sharply than in recent years as producers react to continued strong soy prices, especially in Brazil where additional land is readily available," Glauber said at USDA's annual Agricultural Outlook Forum.

Brazil's 2007-08 soy crop, which is currently being harvested, is estimated by the Agriculture Ministry to be 58.5 million tonnes.

"With limited growth prospects for US soy exports, South America will capture a greater trade share in 2008-09," Glauber said.

One of the largest growing markets for soy is in China, Glauber said.

In China, he said, "higher incomes are increasing the demand for meat and vegetable oil."

According to the USDA's baseline projections, released earlier this month, China is expected to import 36.2 million tonnes of soy and 2.7 million tonnes of soyoil in 2008-09.