News

Soybean harvests contrast in South America

Soybean
Paraguay
Published Apr 6, 2023

Tridge summary

South American countries, which account for around 55% of the world's soybean supply, are experiencing different harvest expectations this season. While Brazil is about to break a record in grain production, Argentina will have its worst crop in over two decades. Yield contrasts stem from the effects of La Niña. Overall, South America's soybean production is still expected to outperform the previous year, but to a lesser extent than initially thought. The consequences of a larger soybean crop in South America, combined with the potential for a larger soybean crop in the United States in the fall, may tend to pressure prices downwards – a trend already evident in the commodities market in 2023, which may continue accentuate in the coming months. Different Effects of La Niña Projections put combined 2022-2023 production in Brazil, Argentina, Paraguay and Uruguay at 6,887 million bushels, an increase of 416 million bushels (6%) over the past season.

Original content

The soybean harvest in South America would have been greater if not for the strong influence of La Niña. La Niña events favor increased rainfall in northern Brazil and decreased rainfall in extreme southern Brazil, Argentina and Uruguay. The fall in rainfall this year has caused the extreme south of Brazil, Argentina and Uruguay to experience a drought. Increased production in South America in 2022/23 South America soybean production The effects of La Niña this season were more concentrated in southern South America, affecting the extreme south of Brazil, Argentina and Uruguay. Paraguay, the fourth largest soybean exporter in the world, was spared this season. According to data from the Chamber of Exporters and Traders of Cereals and Oilseeds (Capeco), Paraguay should produce 367 million bushels, more than double the previous harvest. That estimate represents a recovery from the previous cycle, when Paraguay's soybean crop dropped nearly 60% to 147 million bushels, the lowest ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.