Paraguay’s soybean harvest, like its exports, will decline

According to the USDA’s Foreign Agricultural Information Service (FAS), Paraguay’s soybean production is expected to reach 11.1 million tonnes in 2026-27, as yields normalize on a largely unchanged planted area following a record-breaking season in 2025-26.

In its annual oilseed report, the FAS forecasts Paraguay’s soybean area for the two crops to reach 3.5 million hectares, just 100,000 hectares less than last year, with a slight shift in corn plantings.

As FAS notes, Paraguay’s soybean industry remains largely export-oriented, with shipments forecast to decline by 1 million tonnes to 7.3 million tonnes in 2026-27, driven by lower production and more typical demand from Argentina, which will continue to dominate trade flows.

According to FAS, 75% of these exports will go to neighboring Argentina, which typically consumes the bulk of Paraguayan soybeans to feed its large crushing industry.

Crushing volumes in Paraguay are expected to decline to 3.6 million tonnes, 100,000 tonnes less than in 2025-26, as profitability declines.

Soybean meal production and exports will be slightly lower, at 2.7 million tonnes and 2 million tonnes, respectively.

The European Union is expected to return to Paraguay’s primary soybean meal market, with Chile taking second place. Argentina will remain an important market, but to a lesser extent than in recent years, as soybean meal production and processing in Argentina stabilizes after a dry year.

Soybean oil production is also forecast to decline slightly to 685,000 tonnes, with exports of 600,000 tonnes significantly exceeding domestic consumption. Brazil will remain the primary importer of soybean oil as feedstock for its biodiesel industry.

Tags: soybean, Paraguay, crop forecast