by PressBrazil’s soybean production to increase: forecast from experts
Soybean production for 2021/2022 MY: a report from IGC analysts
IGC has updated the report for Brazil for the 2021/2022 marketing year. Soybean production is expected to increase by 6.7 million tons over the current season, reaching 133.5 million tons.
At the same time, the volume of initial stocks will be about 2 times less than currently recorded. The reserve is projected to be 1.2 million tons. The Brazilian soybean supply will be at 134.8 million tons, 5.4 million tons higher than observed in the current season. If we compare with the last marketing year, then the supply was lower by 13.9 million tons.
Brazil plans to reduce imports of soybeans to 0.2 million tons, in this period the volume of supply will be 0.6 million tons. Export volumes will be increased by 3 million tons compared to the current figures. Supplies of local soybeans to the world market will amount to 85.9 million tons.
According to analysts, next season will increase domestic use of the legume crop by 2.2 million tons compared to 2020/2021. The projected volume is 47 million tons.
It should be noted that the world market of soybeans and its products invariably goes up. And only in January of this year, quotes increased the growth dynamics almost two times compared to December last year. Soybeans exceeded the mark of 14 dollars per bushel and reached record levels. And the price of soybean meal is not far behind.
For three products — soybeans, soy meal and oil — 2020 has been quite successful. Last year, for example, beans rose 34.3%, soybean meal 37.8%, and oil 17.4%. Back in November, products surpassed record highs, and the trend continued in January and February.
In addition to price, demand for soybeans and their products has also been rising regularly. Oil production from the legume crop alone has increased by 63% over the past 5 years. According to 2020 data, there are 122 million hectares of soybeans under cultivation worldwide. The top five producers occupy about 85% of all crops. Brazil comes in first, followed by the U.S., Argentina, India and China.
According to forecasts, in the current season yield of soybean will increase and will reach 362.8 million tons. The increase is due to a good performance in the U.S. and the expansion of cultivation areas in Brazil.