SÃO PAULO, BRAZIL — Brazil’s soybean output in 2019-20 is forecast to increase by 8% over the previous year, according to commodities consultancy INTL FCStone.
Citing strong yields and area increases, INTL FC Stone projected that Brazilian farmers will produce an estimated 124 million tonnes of soybeans, up 1.9% from January’s forecast.
INTL FCStone recalculated planted area in two states — Mato Grosso do Sul and Goiás. The consultancy increased its output estimate for Brazil’s largest grain state, Mato Grosso, by 1 million tonnes to 33.6 million tonnes.
If the positive trend for yields continues, there would be room for further increases in the forecaster’s soybean output projection, INTL FCStone said.
In Rio Grande do Sul, where hot and dry weather has reduced yields, production will fall by an estimated 400,000 tonnes to 18.8 million tonnes, INTL FCStone said.
Production of second corn, which is planted after soybeans are harvested, was estimated at 71.9 million tonnes, unchanged from January, according to the statement on Feb. 4.
Brazil was second to the United States in soybean production in 2018-19 but is forecast to be the leading producer in 2019-20, according to the U.S. Department of Agriculture.