Brazil Expected To Become Top Producer Of Soybeans

 

by Cory Knutt, Pembina Valley Online (Canada)

06 January 2020

 

A USDA report last month stated that Brazil will likely pass the U.S. as the world's number one producer of soybeans.

 

Jon Driedger is vice-president of LeftField Commodity Research.

 

"These areas of the world are increasing in production and it's just kind of further confirmation that as the U.S. and Canada, our relative importance shrinks a little bit as other countries in the world increase production and increase their footprint in global export markets," he said. "I think conditions in South America are for the most part fairly good. We're anticipating a large crop again, not a shock to the markets, just sort of a general confirmation again of a trend that has been taking place over a period of time."

 

Driedger notes the USDA...

 

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https://www.pembinavalleyonline.com/ag-news/brazil-expected-to-become-top-producer-of-soybeans

 

 

U.S. could fall to No. 2 in global soybean production

Brazil may overtake the U.S., a USDA report says

 

By Diego Flammini, Farms.com

Jan 6, 2020

 

The U.S. may not be the world’s leader in soybean production by year’s end.

 

“Brazil is forecast to overtake the United States as the leading soybean producer in the world during the 2019-20 season,” a Dec. 27 report from the USDA’s Foreign Agricultural Service said. “Production is forecast at 123.5 million metric tons (MMT) based on trend yields.”

 

The U.S. yield, on the other hand, is forecast to be “less than 100 MMT in 2019-20, a drop of almost 20 percent on the previous season,” the report says.

 

Even with Brazil’s forecasted production, soybean prices may not be affected.

 

Prices could fall “but it depends on demand,” said Moe Agostino, chief commodity strategist with Farms.com Risk Management. “But, really, it could just be that Brazil gains export market share as (that country’s production) continues to grow.”

 

In August 2019, the USDA forecasted global soybean demand for the 2019-20 marketing year at 148.86 MMT, a 1 percent increase from 2018.

 

America has been the world’s top soybean-producing country since around the time of the Second World War. U.S. farmers...

 

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https://www.farms.com/ag-industry-news/u-s-could-fall-to-no-2-in-global-soybean-production-715.aspx