September 28, 2022

South American soybean production expected to hit record high

Agribusiness consultancy Datagro said South American soybean production is expected to hit record high in the current season now being planted, citing an expected area expansion to an all-time high, Reuters reported.

According to Datagro's initial projection for the new crop, South American farmers will harvest an estimated 219.34 million tonnes in the 2022/2023 season from a planted area of 66.09 million hectares (163.3 million acres).

If confirmed, South American soybean production would increase by 21% from the estimated harvest of 181.95 million tonnes in 2021–2022, when a drought damaged some of the crop in top producer Brazil.

Brazil, which recently started planting its 2022/2023 crop, will contribute roughly 70% of South America's total output, or slightly less than 152 million tonnes, Datagro said.

Datagro analyst Flavio Junior said for average yields, the initial projection considers a relative normality of the climate.

But he emphasised the dangers connected to the La Nia weather phenomenon.

Datagro said the South American soybean planting area for 2022/2023 would represent a 3% increase from the previous season and the sixth straight year of acreage growth.

-      Reuters