by PressBrazilian soybeans could break past production records
Brazilian soybeans stand a good chance of making up for last season’s losses
According to experts’ forecasts, Brazilian soybeans in the 2022/2023 marketing year could break previous records in terms of production. It is expected that the legume crop will reach more than 153 million tons. Brazilian farmers will get such a result due to an increase in planted acreage.
If the forecast of farmers is justified, soybean production in the country will grow by 21% compared with previous years. It should be noted that the past season was not very good for Brazilian farmers. As a result of the impact of prolonged drought, some crops were destroyed and in general, the harvest was of poor quality.
In the new season, Brazilian farmers decided to hedge and sowed 762 thousand hectares more than originally planned. In total soybean is grown on nearly 44 million hectares, which is 2 million hectares more than last season. So the country’s soybean acreage has been increasing regularly for 16 years. The oilseed crop is produced practically throughout Brazil, but the largest crops are concentrated in the western and northeastern regions.
Despite the high forecasts, Brazilian farmers in the southern and central regions of the country fear the impact of adverse weather conditions. The main threat is such a phenomenon as La Niña, which can cause drought.
Experts also expect a high yield of Brazilian corn. According to forecasts, the production of corn should reach 126 million tons, which will be a record for the country.
An increase in the volume of harvest plays an important role in the domestic market, as well as in terms of global export-import processes. The demand for corn continues to grow, as does its value. Therefore, increased production will allow Brazil to keep crop prices relatively stable for local consumers.
Current production is expected to be 9% higher than the previous season, with more than 22 million hectares sown. However, demand for the crop and its high price has not made the grain profitable to grow. A number of farmers abandoned the production of corn, arguing the decision because of increased costs. Therefore, they switched to the cultivation of more profitable crops, including soybeans.
As for exports, Brazil is expected to send about 5 million tons of corn to China this year. Thus, the country will become a key supplier of products for China. A total of Beijing this year intends to import about 18 million tons of culture. It should be noted that for a long time the largest exporter to the Chinese market has been the U.S., but this season Brazil has every chance to surpass them.