In 2020/21 MY, farmers of North America will prioritize soybean production and increase the planted area under the oilseed by 10% reducing the area under corn due to less attractive prices of the grain and possible growth of demand for soybean from China, declared the CEO of Celeres Anderson Galvao within the online conference Soybean and meal market on July 1.
“In 2020/21 MY, the USA will increase the planted area under soybean and improve its position on the global market as producer and exporter. However, the US exporters will face certain difficulties while trying to regain their share on the global market that was took by Mercosur countries”, - the expert pointed out.
Moreover, the situation is aggravated not only by difficult relations between the USA and China but also by stronger position of South America on the soybean export market due to the number of factors. These factors include the lower prices of soybean due to the depreciation of the real that promotes the extension of the planted areas. Moreover, South American countries develop the infrastructure that favors the export of soybean.
“China is recovering after the peak of pandemic and severe lockdown. Processors and importers buy soybean intensively with high demand for South American, preliminary, Brazilian oilseed”, - A.Galvao specified.
