Paraguayan soyabean production is expected to drop to 11.1M tonnes in 2026/27 as yields return to normal following record output the previous year and a largely unchanged planted area, according to a US Department of Agriculture (USDA) report.
The total planted area for Paraguayan soyabean crops was projected to total 3.5M ha, down 100,000ha year-on-year with a slight shift to corn, the USDA’s Foreign Agricultural Service (FAS)’s ‘Paraguay: Oilseeds and Products Annual’ released on 15 April said. [Not sure what they mean by 2 soyabean crops?]
Projecting production to fall by 1M tonnes, the USDA said: “Yields are projected to decline from the current season’s records, as an anticipated El Niño weather pattern typically results in less favourable growing conditions in Paraguay and lower yields.”
Opportunities for further expansion of the soyabean planted area in Paraguay remain limited, according to the report.
“In the Eastern Region, the agricultural frontier is largely saturated, with little available land for meaningful expansion and some marginal areas already being abandoned due to agronomic and economic constraints,” the USDA said.
“As a result, industry sources suggest that, at most, incremental gains of up to 50,000ha could be realised over the medium term, though even this appears optimistic.”
Paraguay’s soyabean industry remains highly export-orientated, with shipments for 2026/27 projected to decline by 1M tonnes to 7.3M tonnes due to decreased production and crushing in Argentina returning to normal levels, according to the report.
This would be combined with lower production and more typical demand from Argentina, which was expected to continue to dominate trade flows, the USDA said.
Out of total exports, 75%-85% was expected to go to neighbouring Argentina, which typically consumed the bulk of Paraguay’s soyabean production to supply its huge crushing industry.
Crushing in Paraguay is expected to ease to 3.6M tonnes, down 100,000 tonnes from 2025/26, as margins soften, according to the report.
Paraguay’s total crushing capacity was estimated at 4.7M tonnes including the addition of a new crushing facility expected to be fully operational in 2026/27.
Soyabean meal production and exports were forecast slightly lower at 2.7M tonnes and 2M tonnes, respectively, although longer-term demand growth was expected from Paraguay’s expanding, export-driven pork sector.
The European Union (EU) was expected to return to being Paraguay’s leading market for soyabean meal with Chile second, the USDA said.
“Argentina will continue to be a top market but less so than recent years as Argentine production and crush stabilise after the drought year,” the USDA said.
Soyabean oil output was also projected to decline modestly to 685,000 tonnes, with exports of 600,000 tonnes outweighing domestic consumption of 100,000 tonnes.
Brazil imports Paraguay’s soyabean oil as feedstock for its biodiesel industry.
The bulk of Paraguay’s soyabeans are either exported or crushed for meal and oil for international markets, according to the report.
