Brazil the worlds largest soybean grower plan to expand the production area due to local shortages
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Brazilian farmers are planning to expand their soy area for the 15th consecutive year, according to a survey by consulting firm Datagro. The world’s largest soybean producer and exporter will increase the area sown by 4%, to 40.57 million hectares in the 2021/2022 season.
With this area, Datagro estimates that the Brazilian harvest will reach some 144.06 million tons of soybeans in the coming season, which farmers will start planting in September. This means next year’s production, which is harvested from the end of January, will be 5% higher than the 136.96 million tons estimated in 2021.
Likewise, the first corn plantings in Brazil will also expand by some 4% to 4.56 million hectares in the new season, as demand for corn – a key ingredient for cattle, pork and poultry feed – remains strong.
In related news, ANEC (the national association of cereal growers) forecasts Brazilian soybean exports should reach 8.45 million tons in July. ANEC reduced the projection of shipments by about 1 million tons, compared to the forecast published last week. Even so, July exports should surpass those registered in the same month of 2020 by around 400,000 tons, according to figures supplied by ANEC.
Corn exports were projected at 3.16 million tons in July, slightly below the 3.195 million tons forecast last week. But amidst the breakdown of the second corn crop, cereal exports should drop by 1.9 million tons compared to the same month last year.
In effect, the shortfall in the corn crop in Brazil has led the meat industry to resort to imports from Argentina to meet its demand for feed input. JBS has already acquired 30 ships of corn from the neighbouring country. Negotiations took place at 15 to 20 reais per 60 kg bag, which are more competitive than those in the domestic market, considering the industries located in the south and southeast regions, according to the company.
“Of the total corn used to feed poultry and swine in JBS/Seara production in Brazil, imports already represent 25% of consumption, with volumes exceeding one million tons,” according to the company. “The excellent crop in Argentina is what has enabled imports at more attractive prices”.
Importing from Argentina and even the US is one of the alternatives for Brazil – traditionally one of the largest global exporters of the cereal. However a 9% fall in corn production, compared to the last harvest, –93.4 million tons–, according to figures from CONAB (the national food-supply company), has forced protein producers to import the cereal
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