Brazil’s 2016-17 soybean production is expected to be a record high.
Due to the current currency volatility, commercialization of the 2016-17 crop is still below last year’s pace. Producers continue to be more strategic with their selling strategy as they expect a rebound in domestic soybean prices in the next few months, the report said.
According to various state sources, less than 40% of the forecasted 2016-17 soybean production has been contracted, which is about 16% lower compared to last year.
Brazil’s 2016-17 soybean production is forecast at 101 million tonnes, a record, due to a larger planted area compared to last year and higher yields based on trend. Soybean exports for Brazil are forecast at 57 million tonnes for 2016-17, the report said. China will remain the main destination for Brazilian soybeans. It is expected that demand for soybeans in China will remain strong. Chinese soybean imports are supported by a growing domestic demand and a large domestic crushing capacity.