Brazil is expected to surpass the USA to become the leading global soyabean producer in 2019/20, according to a US Department of Agriculture (USDA) report.
The country’s 2019-20 soyabean crop is forecast at a record 123.5M tonnes compared to its previous record in 2017-18 of 122M tonnes, the 27 December Global Agricultural Information Network (GAIN) report said.
In contrast, the US soyabean harvest is forecast at less than 100M tonnes for 2019-20, a 20% fall compared to the previous season due to inclement weather affecting both the planted area and yields, according to the USDA’s World Agricultural Supply and Demand Estimate (WASDE).
For 2019-20, Brazil is expected to export 75M tonnes of soyabeans, although reduced demand is forecast due to the emerging USA-China trade truce and African swine fever (ASF) in China cutting the country’s swine herd and feed/soyabean meal needs.
“Producers are cognizant that a trade accord between Washington and Beijing is almost certain to lessen Brazilian exports and exert downward pressure on Brazil’s soyabean prices,” the USDA report said.
The South American nation planted 36.8M ha of soyabeans in the 2019-20 season due to producers planting a larger area than usual because of the weakening Brazilian real against the US dollar, making exports attractive.