Soyabean production in Paraguay is forecast to rebound to 10.9M tonnes in 2025/26 due increased yields and a modest increase in planted area following weather-driven losses the previous year, according to a report by the US Department of Agriculture (USDA).
With the anticipated end of the La Niña weather pattern, producers were expecting a return to more typical rainfall and weather conditions, which would improve yield recovery and stabilise overall production, the 17 April report said.
Soyabean crushing in Paraguay is expected to increase to approximately 3.4M tonnes in 2025/26, due to higher domestic production and a return to normal export flows, according to the USDA’s Oilseeds and Products Annual: Paraguay.
Improved availability of a new crop in Argentina and renewed momentum in Argentine soyabean processing are expected to push Paraguay’s crushers to utilise 70-80% of installed capacity, which would be one of the highest levels in the last three years, the report said.
Total national crushing capacity was estimated at 4-4.5M tonnes, although utilisation rates had historically remained well below this due to volatility in both supply and prices.
Crushing activity in Paraguay remains closely tied to developments in Argentina, which is the dominant buyer of Paraguayan soybeans, according to the USDA’s Foreign Agricultural Service (FAS) report.
With Argentina emerging from several consecutive years of drought conditions, Paraguayan crushers expected more consistent demand and improved market conditions in 2025/26, the report said.
Domestic consumption of soyabeans, soyabean meal and soyabean oil remained minimal, with the bulk of Paraguay’s soyabeans either exported or crushed for meal and oil bound for international markets, the USDA said.
Paraguayan soyabean exports were forecast to rise to 7.2M tonnes in 2025/26, reflecting a recovery from the slight downturn the previous year.
Brazil remained a secondary but stable destination for Paraguayan soyabeans, accounting for around 10% of total exports each year. This share was expected to remain relatively flat over the coming year.
“The potential for growth in exports to Brazil is limited by several factors, including increasing Brazilian soyabean production, limited logistical integration between the two countries near production areas, and Argentina’s dominant purchasing role, which continues to absorb the majority of Paraguay’s exportable supply,” the USDA said.
“Paraguay’s soyabean trade faces ongoing logistical challenges that could temper export growth. As a landlocked nation, Paraguay relies heavily on barge transport along the Paraguay and Paraná Rivers to reach international markets.”
Despite the challenges, Paraguay’s export volumes are expected to remain strong in 2025/26, according to the report.
“Rising demand from Argentina, adequate soyabean availability and continued flows to Brazil should boost exports,” the USDA said.
“However, continued investment in transport infrastructure and regional coordination will be essential to sustain competitiveness and mitigate supply chain disruptions in the years ahead.”
