Brazil’s soyabean planted area is heading for its ninth consecutive year of setting a new record, with the 2018/19 planting area forecast to go up 2% to 35.8M ha.
The increase stems from projected higher prices, higher than expected demand from China and an increase in domestic Brazilian soyabean consumption, according to a 24 April GAIN report by the US Department of Agriculture (USDA).
The USDA projected soyabean production to climb up to 115M tonnes, which would be the second largest soya crop in Brazil in history.
“Despite the record planted area, production is forecast slightly lower compared to the previous year based on yield trends,” said the USDA.
“Productivity during the 2017/18 and 2016/17 seasons were way above trend because of ideal weather conditions throughout Brazil and excellent performance by new technologies in the market.”
Soyabean exports were expected to end up at around 67M tonnes with strong demand from China, although the total was slightly lower than last season’s record of 69M tonnes.
Domestic crush was forecast to go up to 44M tonnes, with the USDA attributing the increase to the continued economic recovery in Brazil alongside export demand.
“Brazil has an estimated crushing capacity of 62M tonnes, of which 70% is expected to be utilised next year. As a result, no new investments in crushing facilities are expected in Brazil in the short term,” the report said.