With 40% of its soybean area harvested by the end of February and favorable weather conditions in most of the country, Brazil is definitely headed for a record production this season.
In early February, AgRural raised its production estimate to 125.6 million metric tons, more than 10 million tons up from last year. There are drought-related losses, however, in Rio Grande do Sul, Brazil’s southernmost state and number-three soybean producer.
AgRural has already made two cuts to the forecasted production for the state since the beginning of the year and further reductions will be made in March. Other states, on the other hand, have very good prospects and are likely to make up for most of the losses in Rio Grande.
Exports
Even with a bumper crop, Brazil is likely to export less soybeans in 2020. Before the coronavirus outbreak in China, AgRural had estimated exports at 70 million metric tons, 4 million metric tons down from 2019, due to an expected increase in the US exports to China.? Continue reading
