Brazil: The Soybean Powerhouse

Brazil just keeps breaking records. For 2020/21 the country’s soybean production is forecast at a record 4.98 billion bushels, which is up 8.6% from last season’s record crop.

Brazilian soybeans
Brazilian soybeans
(Top Producer, CONAB, USDA, University of Illinois)

Brazil just keeps breaking records. For 2020/21 the country’s soybean production is forecast at a record 4.98 billion bushels, which is up 8.6% from last season’s record crop.

Strong Chinese demand and a weak Brazilian real coupled with a rising U.S. dollar created a favorable 2021 price outlook for Brazilian farmers. In fact, data from Rabobank’s RaboResearch team shows forward pricing contracts for March 2021 delivery in Mato Grosso were 30% higher than last year. Here’s a look at how the U.S. stacks up with its No. 1 competitor in soybean production.

Future expansion of Brazilian soybean acres will likely occur in the Midwest, North and Northeast of Brazil, according to Joana Colussi and Gary Schnitkey at the University of Illinois.

Read more from farmdoc daily: New Soybean Record: Historical Growing of Production in Brazil

AgWeb-Logo crop
Related Stories
Jerry Gulke, president of The Gulke Group, says it doesn’t matter whether farmers believe the USDA report or not because it’s what the market is trading.
Yield increase of 2.7 bu. per acre pushes carryout to 1.849 billion bushels, sending stocks-to-use back above 10%.
With corn and soybean yields in question and price rationing back on the table, Gulke says the farmers who treat volatility as the enemy — instead of the opportunity — are the ones left holding the top.
Read Next
Federal regulators are seeking farmer comments on restrictive dealer agreements, high parts costs and repair barriers through Dec. 7.
Get News Daily
Get Market Alerts
Get News & Markets App