Soybean production increase in South America
Soybean global production for the season 2019/20 is forecast at 341,76 Mio Tons, -4.7% compared to 2018/19 season, but increasing compared to the previous estimates. This increase reflects the higher projected production in Brazil and Argentina.
Further increase in production expected for Brazil and Argentina in the season 2019/2020
For both South American Countries is expected a further increase in production of 1 Mio Ton compared to February prediction, reaching respectively 126 Mio Tons in Brazil and 54 Mio Tons in Argentina.
Brazil confirms itself as the world’s main Soybean producer in the 2019/2020 season, with an expected increment of 7.7% compared to the previous season. The increase of production in Argentina is mainly due to overall favourable conditions in higher-yielding central and north-western farming areas. Forecast for Soybean production in the US is unchanged at 96.84 Mio Tons (-19.6% compared to the previous season).
Considering a higher Soybean production in South America and an expected steady trend for consumption, it is expected a smaller decrease in stocks compared to the previous estimates.
Soybean export is positive, China main destination
Global Soybean export is expected to increase, +2.4% compared to the last season, driven by the higher exports for the main exporting Countries: US (+4.4%) and Brazil (+3.2%). This increase largely offset the projected decrease in export for Argentina (-9.9%).
China, which has accounted for the 57% of world Soybean import in the season 2018/2019, imported 88 Mio Tons in 2019, of which 57.7 Mio Tons from Brazil (65% of the total) and 17 Mio Tons from US (19% of the total). China’s average import price in December 2019 was 408 $/Ton.