Uruguay to increase soybean production in 2026/27 season

Soybean production in Uruguay is expected to rebound sharply in the 2026-2027 season. The industry is projected to fully recover from the dry previous season, according to a report from the USDA Foreign Agricultural Information Service (FAS).

Experts expect a significant increase in gross harvest and yield: soybean production will rise to 3.1 million tons (compared to 1.95 million tons in the 2025-2026 season). The cultivated area will expand by 50,000 hectares to 1.3 million hectares, and yields will return to the national average of 2.4 tons per hectare.

FAS warns that heavy rains during the harvest period could reduce the forecast. Excess moisture threatens to cause bean rot and prevents equipment from entering the fields.

Uruguay plans to increase export shipments to 2.8 million tons (an increase of 700,000 tons compared to last year).

China will remain the leading purchaser, accounting for 80-90% of Uruguay’s total soybean exports. Demand from China remains stable and is the main driver of the industry. Shipments to Egypt and Bangladesh continue to decline, and new major markets have not yet emerged.

The service notes that the national moisture standard of 14%, which is higher than the preferences of most global importers, remains a constraint on international trade.

Despite the increased harvest, Uruguay’s processing sector remains stagnant. Processing capacity is limited to 150,000 tons. The main reasons for the low competitiveness of domestic plants compared to the export market are high operating costs and a lack of modern infrastructure.

This season, Uruguay is forced to purchase soybeans from Paraguay and Argentina to cover its domestic deficit. However, according to FAS forecasts, the need for imports will virtually disappear in the 2026–2027 season thanks to a bumper domestic harvest.

Tags: soybean, Uruguay, crop forecast