Global soybean production to rise 5% in 2024-25: IGC

GLOBAL – Global soybean production is expected to reach a record 418 million tonnes in the 2024-25 marketing year, marking a 5% increase from the previous year, according to the latest Grain Market Report released by the International Grains Council (IGC) on February 20.

According to the report, this surge is driven primarily by large harvests in the United States and Brazil, reinforcing the oilseed’s critical role in global agriculture.

“With gains spanning feed, food, and industrial segments, record (soybean) processing is anticipated, while inventories are pegged at a new high (82 million tonnes, up 11% year on year),” the IGC stated in its report.

While soybean production is on an upward trajectory, the outlook for total grains (wheat and coarse grains) is less optimistic.

The IGC trimmed its 2024-25 total grains production estimate by 3 million tonnes from its January forecast, bringing the new figure to 2.301 billion tonnes. If realized, this would be slightly below the 2.309 billion tonnes recorded in the previous year.

Maize (corn) production prospects took a hit, primarily due to deteriorating conditions in South America, while sorghum output is also projected to decline.

Despite these setbacks, total grains consumption is forecast to reach a record 2.334 billion tonnes, though it has been slightly lowered from the January estimate. However, global ending stocks are projected at 576 million tonnes, a 5% decline from the previous year and the lowest in a decade.

Trade in total grains is also expected to dip, with the IGC lowering its forecast by 1 million tonnes from the previous month, primarily due to reduced wheat and sorghum import expectations for China. Wheat production remains steady at 797 million tonnes, with consumption at 806 million tonnes, but trade is expected to decline by 8% to 197 million tonnes.

Looking ahead, maize acreage is projected to increase in key exporting countries. Meanwhile, the global rice supply-and-demand balance remains largely unchanged, with the IGC predicting record production, consumption, and trade.

The IGC’s Grains and Oilseeds Prices Index (GOI) remained stable from the previous month at 221. While average export quotations for grains rose, rice and soybean prices experienced slight declines. Overall, the GOI stands 2% lower than in February 2024.

 Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.