ASUNCIÓN, PARAGUAY — Soybean production in Paraguay is forecast to rebound to 10.9 million tonnes in marketing year 2025-26 on improved weather and gains in acreage and yields, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

Paraguay produces two soybean crops per year: the primary zafra crop, which is planted between late August and mid-November and harvested from late December through mid-March, and the second zafriña crop, typically planted in late January to early February and harvested from mid-May through July.

If realized, total production would improve from the weather-impacted 9.7 million tonnes estimated for 2024-25, the FAS said.

“With the anticipated end of the La Niña weather pattern, producers are expecting a return to more typical rainfall and weather conditions, which should improve yields recovery and stabilize overall production,” the FAS said.

The FAS is forecasting soybean crush in Paraguay will increase in 2025-26 to 3.4 million tonnes, up from the previous year’s 3.1 million tonnes due to higher domestic production and a normalization of export flows.

The Paraguayan crushing industry ended calendar year 2024 with the lowest monthly volumes recorded in nearly a decade, the FAS said. Crushing volumes in early 2025 are showing signs of slight recovery but remained below seasonal norms.

Improved availability of new crop in Argentina and renewed momentum in Argentine soybean processing are expected to push Paraguay’s crushers to utilize 70% to 80% of installed capacity, among the highest levels in the last three years. Total national crush capacity is estimated at 4 million to 4.5 million tonnes, though utilization rates historically have remained well below this due to volatility in both supply and prices, the FAS noted.

“Crushing activity in Paraguay remains closely tied to developments in Argentina, which is the dominant buyer of Paraguayan soybeans,” the FAS said. “With Argentina emerging from several consecutive drought years, Paraguayan crushers expect more consistent demand and better market conditions in 2025-26.”

Improved harvest conditions and continued strong demand from Argentine crushers combined with a stabilization in local crush are expected to facilitate greater soybean export availability in the coming marketing year.

Soybean exports from Paraguay are forecast to rise to 7.2 million tonnes in 2025-26, reflecting a recovery from the slight downturn the previous year’s 6.5 million tonnes.

With minimal domestic consumption for the South American nation of nearly 7 million people, Paraguay’s crushing industry continues to rely heavily on exports of soymeal and oil, with approximately 95% of output destined for foreign markets. Southeast Asia, Chile, and Argentina are key buyers of meal.