Soybean sales are growing in Brazil

In Brazil, the pace of soybean sales has increased significantly over the past 30 days, although it is still slightly lower than the 5-year average, SAFRAS&Mercado reports.

Specifically, as of September 6, soybean sales for the 2023/24 crop reached 82.2% of projected oilseed production (77.5% a week earlier), compared to 79.8% on the same date in 2023 and 86.4% on average over the last 5 years. Thus, from the expected 151.6 million tons in MY 2023/24, farmers sold 124.6 million tons.

Sales of the new soybean crop, which in MY 2024/25 is projected at a record 171.54 million tons, accounted for 22.5% or 38.62 million tons as of September 6 (18.2% a week earlier). For the same period last year, the new crop sales rate was 17.9% and the 5-year average was 26.4%. The crop growth is due to the expected expansion of soybean acreage in the country to 47 million hectares.

According to forecasts of the exporters association Anec, in September exports of Brazilian soybeans will reach 5.6 million tons, which is 1.4% more than the level in the specified period of 2023 (5.5 million tons). At the same time, analysts do not rule out that exports could increase to 6.5 million tons, but will still be less than the August volume of 7.99 million tons.

Brazil, the world’s largest soybean producer and exporter, accounts for almost 60% of global soybean exports. With this year’s crop expected to be the largest in the country’s history, the market will be oversupplied with soybeans, exacerbating the current oversupply and driving down prices.

Tags: Brazil