It is expected that the production of soy in Brazil will reach a record level of 162 million tons in the 2023/24 marketing year, with planting continuing at a rapid pace, according to a report from the US Department of Agriculture (USDA).
The volume would represent an increase of 4.5% compared to the previous year's production of 159 million tons, according to the USDA's Foreign Agricultural Service (FAS) Global Agricultural Information Network (GAIN) report.
Brazilian farmers opt for soybeans amid low prices, boosting planting area
“Soybean prices in Brazil are at their lowest levels since pre-pandemic times, but farmers are still increasing planting area in line with the trend,” the USDA said.
“This is due to the fact that farmers are switching from planting first-crop corn to soybeans. Corn prices are also low at the moment, but worse relative to soybeans.”
The USDA said the therefore above-average planting pace is due to more ideal weather patterns than in previous years in the month of September.
The planted area was expected to reach 45.4 million hectares in 2023/24, up from 43.8 hectares in 2022/23, according to the October 11 report.
Positive outlook for soybean producers in Brazil: Falling production costs and rising exports
For the first time in several years, the USDA said the cost of production for Brazil's soybean producers should decrease.
Brazil is forecast to have another record year for soybean exports. Estimates indicate shipments of 100.2 million tons, exceeding the 99 million estimated in 2022/23, as mentioned in the report.
“The forecast is based on increased expectations of ample supplies available and an extremely favorable exchange rate,” the USDA said.
From February to August 2023, Brazil exported 80 million tons of soybeans. This represented a significant increase from the previous year's 64 million tonnes.
This was due to record production, significantly reduced production in Argentina and continued demand from China, according to the report.
Soy is the main crop produced in Brazil. Brazil is the largest producer and exporter of soybeans in the world. Most shipments go to China.
Source: Oils & Fats International
