March 5, 2024

Abiove trims Brazil's 2024 soybean output forecast for second time

Abiove, the association representing global grain traders and crushers in Brazil, has revised downward its estimate for Brazil's 2024 soybean production for the second time this month, citing adverse climate conditions, Reuters reported.

According to Abiove's latest projection, it anticipates Brazilian farmers to yield 153.8 million metric tonnes of soybeans this year. This figure marks a decline from the 156.1 million tonnes forecasted in February and the 159 million tonnes produced in 2023.

The association attributed the downward revision to a reduction in expected national average soy yields, primarily due to adverse weather conditions in key production areas. The El Nino weather pattern has brought excessive heat and dryness to regions like Mato Grosso, Brazil's primary grain state, while the southern parts of the country experienced excessive rainfall, delaying the sowing season in states such as Rio Grande do Sul.

Based on insights from global grain traders, Abiove has adjusted its soybean national average yield forecast to 3,411 kg per hectare, down from 3,597 kg/ha recorded in 2023.

-      Reuters