Brazils Soybean 2018 plantings forecast to break all records
A 2% increase in planted area in the 2018-19 season is due to expectations of higher prices, and greater demand from Chinese buyers, plus an increase in domestic consumption.
Soybean planted area in Brazil is forecast to set a new record for the ninth consecutive year at 35.8 million hectares, according to an April 24 Global Agricultural Information Network (GAIN) report from the U.S. Department of Agriculture.
The 2% increase in planted area in 2018-19 is due to expectations of higher prices, higher-than-expected demand from Chinese buyers, and an increase in domestic soybean consumption, the report said.
Production is forecast to reach 115 million tons, which would be the country’s second-largest soybean crop ever.
“Despite the record planted area, production is forecast slightly lower than the previous year based on yields trend,” the USDA said. “Productivity during the 2017-18 and 2016-17 seasons were way above trend because of ideal weather conditions throughout Brazil and an excellent performance by new technologies in the field.”
The report said domestic crush is forecast at 44 million tons in 2018-19, with the increase being “a result of the continuation of the economic recovery in Brazil as well as expect demand.”