April 16, 2024

Record soybean harvest in Brazil's Rio Grande do Sul counters nationwide drought woes

A historic soybean harvest in Brazil's southernmost state of Rio Grande do Sul is providing a much-needed boost to offset losses caused by drought in other parts of the South American nation, Reuters reported.

Estimates indicate that Rio Grande do Sul will witness a staggering 68% increase in soybean production this season compared to the previous year, contributing significantly to stabilising prices in the world's largest producer and exporter of soybeans.

Despite earlier projections of a bumper crop, Brazil's overall soybean production for the season is anticipated to reach around 146.5 million tonnes, as per the national crop agency Conab.

This figure is a downgrade from the initial forecast of 162 million tonnes made in October 2023, primarily due to the adverse impact of the strong El Nino phenomenon on fields in the centre-west region of Brazil, including the key producing state of Mato Grosso.

Last year, Cotrijal, a major agricultural cooperative, faced significant setbacks when a drought decimated yields, resulting in only half of the forecasted soybean quantity.

However, this season's remarkable harvest turnaround is set to elevate Cotrijal's soybean intake to an estimated 1.3 million tonnes, a notable increase from the 900,000 tonnes received in 2023.

Reflecting on the situation, Cotrijal President Nei Manica said that they invest to expand storage annually, but there remains a lack of space and they must look for space within the industry and partners. And that is a good problem.

The resurgence in soybean production in Rio Grande do Sul marks a significant rebound following two consecutive years of drought in southern Brazil and neighbouring Argentina.

-      Reuters