Brazil’s vegetable oil association (Abiove) said it expects the nation’s soybean crop to reach a record 117.4 million mt, up 2.3% on its previous estimate.
Abiove, in a release on its website, said that exports and domestic crush would reach a record of 70.4 million mt and 43.2 million mt, respectively.
Meal production would reach 32.5 million mt with 16.4 million mt earmarked for export, while oil production would hit 8.6 million mt with virtually no imports.
The harvest estimate puts the association projection at the high end of public and private estimates, with only AgRural projections higher at 119 million mt.
Domestic crushing of soybean is largely being driven by Brazil’s mandatory biodiesel blend in transport fuels, which increased to 10% starting in March 2018.
The news of a greater than expected crop will be welcome news to Chinese buyers, who are importing more Brazilian beans on the expectation that US imports may be taxed as part of a wider trade spat between the US and China.