EL NINO FAVORS SOUTH AMERICAN SOY; OUTLOOK FOR NORTHERN BRAZIL’S SOY IS NOT AS POSITIVE

The El Niño weather phenomenon should boost soybean production in South America due to higher rainfall in southern Brazil and other countries, including Argentina. The rise in humidity in the southern part of the continent is expected to boost crop yields in Rio Grande do Sul, which is the third-largest Brazilian state for soybeans. Paraná, the second-largest producer in Brazil, and Argentina may experience larger harvests after previous seasons were impacted by the La Niña drought. The Equatorial Pacific’s highest temperature anomalies suggest a mild to moderate El Niño, which could result in a record-breaking harvest for Brazil, the world’s leading producer and exporter of soybeans. It’s estimated that Brazil produce over 160 million tons this time.

Source: Reuters (*Translated by Ia Niani)