Record high soybean harvest expected in Brazil

In Germany, UFOP reports that Brazil is set to take the lead among soybean producers anticipating a record harvest in 2019/20, ahead of the US. By contrast, the US has harvested the smallest crop in six years. Global soybean supply in the 2019/20 marketing year is expected to decline 6 per cent compared to the previous three years, to 338 million tonnes.

The US soybean harvest is already finished, amounting to around 96.8 million tonnes, which is down 24 million tonnes from the previous year. The reason is excessively wet conditions from sowing time to harvesting. This is why Brazil, with an expected bumper crop of 123 million tonnes, is seen to retake the lead among soybean producers. According to Agrarmarkt Informations-Gesellschaft (mbH) (AMI), both expansions in area and increases in yield are likely factors contributing to the growth in soy output. The Brazilian area dedicated to the production of cereals and oilseeds was expanded 967,200 hectares to 61.6 million hectares compared to the previous year, with the soybean area alone accounting for 923,900 hectares. In other words, the total soy production area increased to 36.8 million hectares. By contrast, soybean production in Argentina, the world’s third largest soybean producer, will presumably decline 2.3 million tonnes to 53 million tonnes. Drought lead to a reduction in area planted. However, AMI expects the harvest estimates for South America to be adjusted, because harvesting will not commence until the beginning of March. The US, Brazil and Argentina account for around 81 per cent of global soybean production.