BRAZIL – Brazil is poised to achieve a record soybean crop in the 2024-25 season, projected to reach 161 million tonnes, a 6% increase from the previous season, according to a recent report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA).
The expected yield gains are attributed to the growing adoption of advanced agricultural technologies, including genetically engineered seeds, as well as enhanced chemical and fertilizer applications.
Despite facing lower market prices, Brazilian farmers are actively expanding soybean production due to its profitability compared to corn and its relatively straightforward cultivation process.
The FAS reports that the global demand for soybeans is projected to continue its upward trajectory, providing Brazilian farmers with confidence that buyers will be available when the harvest is ready for market.
“The forecast is based on increased expectations of ample available supplies and an extremely favorable exchange rate,” the FAS noted.
This favorable economic landscape is further supported by anticipated record exports of 102 million tonnes, an increase from 99 million tonnes in the previous season.
Notably, approximately three-quarters of these shipments are expected to be destined for China, which remains the predominant buyer of Brazilian soybeans.
The soybean crush for the 2024-25 season is estimated to rise to 55.5 million tonnes, reflecting a 2.5% increase from the 2023-24 estimate.
This increase is fueled by larger soybean supplies and a heightened demand for soybean products. The FAS indicates that this expansion is driven by both domestic needs for soy oil and meal, as well as sustained export demand, bolstered by the continued relative weakness of the Brazilian real against the dollar.
In addition to these forecasts, recent reports highlight the broader context of agricultural dynamics in Brazil. The country’s agricultural sector continues to embrace sustainability practices, focusing on reducing environmental impacts while maximizing production efficiency.
Moreover, as global trends shift toward plant-based diets and sustainable food sources, the demand for soybeans is expected to remain robust.
Analysts predict that Brazil will play a crucial role in meeting this demand, especially as countries look to diversify their agricultural imports amid changing trade relationships and geopolitical tensions.
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