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The U.S. share of global soybean production is falling for a second year while its two South American oilseed rivals pass a milestone. Brazil and Argentina will grow 53% of the world’s soybeans, with a combined output of 180 million tonnes in 2019/20, estimated the USDA in its monthly WASDE report.

Aided by record plantings, Brazil’s soybean crop was estimated at a record 126 million tonnes, up 1% from the February forecast and 9% larger than last year. More than 40% of the crop was harvested by late February and yields were 6% above normal, said USDA’s World Agricultural Production report. “Soybean area continues to increase,” said USDA. Brazil is the longtime leader in soybean exports and will be the top grower in 2019/20 as well.

Argentina’s crop was estimated at 54 million tonnes, up nearly 2% from the February estimate. The increase “is due to overall favourable conditions in higher-yielding central and northwestern farming areas,” said USDA analysts in the WASDE report.

Hampered by the rainiest spring in a quarter-century, the U.S. crop of 3.558 billion bushels, or 96.84 million tonnes, amounted to 28% of the global harvest of 341.5 million tonnes, compared with 33% in 2018/19 and 35% in 2017/18.

“With higher South American production and lower use, global soybean (ending) stocks are increased by 3.6 million tonnes to 102.4 million,” said the WASDE. The USDA lowered its forecast of the season-average U.S. soybean price to $8.70 a bushel, down 5¢ from February. It also reduced its estimate of the season-average corn price by 5¢, to $3.80 a bushel, “based on observed prices to date.”

Source: Successful Farming

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About Geoffrey W W McRae

With a highly distinguished career spanning more than three decades across five different countries, New Zealander Geoffrey McRae has established himself as a leading authority on South American real estate, agricultural, and commercial matters. As the founder of Gateway to South America – a real estate consulting group specialising in six South American countries – Geoffrey has developed a reputation for discretion, expertise, and experience that has seen him represent some of the most prestigious clients in the region. His deep knowledge and experience of South American markets have placed him at the forefront of the industry and given him the opportunity to guide and advise with confidence and surety. His long and successful career – which continues to evolve and expand daily – is a testament to his talent, tenacity, and ambition.

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