In its latest report on Brazil’s soybean crop released Feb. 1, USDA’s GAIN (Global Agricultural Information Network) forecasted 2017/18 Brazilian soybean production at 112.5 million metric tons, the country’s second largest crop after the record set on the previous season. The report is signed by Nicolas Rubio.
It is also forecasted that soybean exports for the 2017/18 Marketing Year will reach 65 million tons, as a result of strong demand by China. It has been also estimated that 43.5 million tons will be destined for processing (crushing) in 2017/18, “based on higher biodiesel blending mandates, higher exports of soybean meal, and higher domestic consumption. A newly approved carbon credit scheme, RenovaBio, is expected to help reduce idle crushing capacity from 20 percent to nearly zero by 2020”.
According to the same source, Brazil is the largest soybean exporter in the world and will sustain its leadership position in 2018. Soybean exports for 2017/18 Marketing Year (February 2018 – January 2019) will be about 5 percent lower compared to the previous MY. “The reduction is based on lower exportable supplies and higher domestic consumption. However, due the large ending stocks and big expected crop, Brazil will continue to ship large quantities and heavily compete with U.S. soybeans, particularly in China”.
Acess to full USDA’s-GAIN report