Brazil’s soybean production is expected to hit a record high

According to the 2021 / 22 forecast report first released by conab, Brazil’s soybean production in 2021 / 22 is expected to reach a record 14075 million tons, an increase of 2.5% year-on-year.

At present, soybean planting in Brazil has begun.

Conab expects the sown area to reach 39.9 million hectares, an increase of 2.5% year-on-year, which is higher than many analysts expect.

Although the fundamentals of soybean supply and demand are good, the costs of chemical fertilizers, pesticides and seeds rose sharply at the beginning of this year, which will affect the income of soybean planting in the future.

Conab also pointed out that considering the import prospect of China and the usual market share of Brazilian soybeans, Brazil’s soybean export may reach a record 87.43 million tons in 2022. Brazil’s domestic soybean crushing volume may increase by 6 million tons to 52.6 million tons, but this depends on whether the biodiesel blending rate is increased.

Conab expects Brazil’s grain and oilseed production to reach 288.61 million tons in 2021 / 22, a year-on-year increase of 14.2% or 35.87 million tons. However, the weather is uncertain. The weather forecast shows that it may continue to be affected by La Nina phenomenon at the beginning of 2021 / 22, which may lead to unstable weather conditions.

Source: Master Boyi


Post time: Oct-14-2021