Planting intentions point to new area expansion and record Brazilian soybean output

Porto Alegre, July 21 2021 – Driven by two consecutive years of firm prices, Brazilian soybean growers must again expand the area to be cultivated in 2021/22. As planting only starts in September, the preliminary scenario, with regular climate, points to a new record production level, which could surpass 140 mln tons.

Brazilian growers must seed 39.82 mln hectares in 2020/21, the largest area in history, up 2.3% from the total planting of 38.93 mln last year. The projection is part of the SAFRAS & Mercado’s planting intention survey, released on July 16.

With a possible increase in productivity, from 3,542 to 3,590 kg/ha, the national production must be above that obtained this season. The initial forecast is for a crop of 142.24 mln tons, up 3.7% from the record of 137.19 mln tons obtained this year.

The strong profitability registered in 2020 and 2021, together with the maintenance of high prices in the second half of this year, will be the main incentive factor for new growth in the Brazilian soybean area.

Despite this, this season the advance may be a little smaller compared to previous seasons due to good margins also registered by the corn and meat industries. Even so, soybeans will gain ground due to the opening of new areas and the recovery/use of degraded pasture areas.

The largest percentage increase in acreage must again be in the North region, where the agricultural frontier finds more room for growth. Among the main growing states, Mato Grosso stands out, which, even with the largest sown area in the country, must register another considerable increase. In the state and throughout the Midwest region, besides the Southeast, the summer production must remain with soybeans and the second corn crop.

Under normal weather conditions, Brazil must reap a new record crop of soybeans in the 2021/22 season, surpassing for the first time the level of 140 mln tons.

Safras & Mercado

Tags: Brazil, soybeans, area expansion