Brazil is expected to produce a record soyabean crop in 2024/25, according to a report by the US Department of Agriculture (USDA).
Accounting for 40% of global soyabean production, making it the world’s largest producer and exporter of soyabeans, Brazil’s output is projected to increase from 169.5M tonnes in 2024/25 to 173M tonnes due to a slight increase in plantings and yields, the USDA’s 21 March Foreign Agricultural Service (FAS) report said.
At 112M tonnes, soyabean exports are forecast to reach record levels in in 2025/26 at 112M tonnes, compared to 108.3M tonnes the previous year, according to the Global Agricultural Information Network (GAIN) report.
Global soyabean demand would continue to rise, with China being “the primary driver of global demand, accounting for the most soyabean imports worldwide”, the agency said.
Despite China’s aim of becoming more self-sufficient in grains and oilseeds, the USDA said it did not expect it to reduce its intake from Brazil, particularly with trade tensions increasing with the USA.
“China is unlikely to significantly pull back on purchases of Brazilian soyabeans due to established relationships and the inherently less politically charged relationship between Brasilia and Beijing,” the USDA said.
Accounting for approximately 14% of Brazil’s soyabean and derivative exports, the European Union (EU) was also a significant export market.
The South American country’s currency exchange rate, which remains relatively low due to economic stagnation, is another factor boosting Brazilian soyabean exports, according to the “Brazil - Oilseeds and Products Annual”.
Against a backdrop of surging global soyabean demand, Brazil’s soyabean planted area had increased by 20% – or 7.9M ha – over the last four years, according to Brazil’s National Supply Company (CONAB) estimates.
As the Brazilian government’s focus was on the conversion of degraded pastureland to crop production, the USDA said it expected the planted area to continue expanding.
According to CONAB estimates, Brazil’s soyabean area should reach nearly 56M hectares by 2032/33, with production rising to 186.7M tonnes.
