In 2020/21 MY, Brazil and Argentina will produce 184.5 mln tonnes of soybean or more than 50% of the total global output (363 mln tonnes), declared Tiago Vicente, the Senior Edible Oil Sales Specialist of Aboissa Commodity Brokers within the online conference Soybean and meal market on July 1.
“The planted area under soybean in Brazil could reach the record 37 mln ha due to the low cost of production and the quick return of committed capital promoting farmers to cultivate the oilseed. That helped Brazil to overcome the USA in terms of soybean production that could reach 131 mln tonnes this year compare to 112.3 mln tonne in the USA”, - the speaker said.
The expert emphasized that Brazil could export 83 mln tonnes of soybean, down from 85 mln tonnes in 2019. However, the country already supplied the record 48 mln tonnes of the oilseed to the global market during the first 5 months of 2020. China imported 80% of the volume.
“Except high external demand, we have high inner demand for soybean, mainly from the biofuel industry”, - T.Vicente explained.
In Argentina, about 60% of cultivated area is covered with soybean. In 2020, the country increased the planted area to 17.7 mln ha and could produce 53.5 mln tonnes of the oilseed (+3.5 mln tonnes to 2019).
“At the same time, Argentina processes more than 70% of its soybean output. The processing volume could reach 39 mln tonnes this year. Therefore, the soybean meal production could total 29.8 mln tonnes and soybean oil – 7.6 mln tonnes”. – the expert pointed out