According to DATAGRO, soybean production is expected to reach a record number over the last forecast, from 134.98 million tons to 135.61 million tons, and about 7% above last crop year (127.15 million tons). The planted area was revised from 38.79 million to 38.75 million hectares, a volume still above that of last year (37.39 million ha). The most important factors for growing soybeans in this harvest season are the following: high average prices, high average productivity, positive gross profit, credit supply, intense internal and external demand, Argentina exports limits, the new minimum freight pricing table, and the maintenance of the phase 1 of the economic and trade agreement between USA x China. On the other hand, DATAGRO expects lower numbers for corn in Brazil. Considering soybean and corn crops, the new estimates point to a planting area of 19.62 million ha in 2020/21, over the 19.77 million ha previously expected, but 3% above 2019/20 (18.98 million ha). In turns, expected production was revised and will have a reduction (from 114.04mt to 109.93mt), when compared to the last survey, however, the percentage is 3% above the previous crop year.
Source: DATAGRO
*Translated by Ia Niani