S&P Global Platts website reported on April 7 that a report issued by the US Department of Agriculture predicts that from 2021 to 2022, Brazil will plant 40 million hectares of soybeans with a yield of 141 million tons, both of which will achieve new historical records.
The report pointed out that based on favorable market conditions, including strong demand, favorable prices, and real depreciation, Brazilian soybean farmers will continue to expand their soybean planting area. Brazil is currently the world’s largest soybean producer and exporter, and its output accounts for more than one-third of global production.
The report believes that a key factor in the expansion of soybean planting in Brazil is the availability of land. The Brazilian Agricultural Supply Company (Conab) estimates that in the past five production years, Brazil’s soybean planting area has increased by 13%to approximately 4.55 million hectares.
Mato Grosso is the largest soybean-growing state in Brazil. The state’s Agricultural Economic Research Institute (EME) estimates that by 2030, the soybean acreage in Mato Grosso State will increase from 10.3 million hectares in 2021 to 14.79 million hectares, a growth rate of more than 40%. The report of the United States Department of Agriculture predicts that from 2021 to 2022, the soybean acreage in Mato Grosso will increase by about 3%year-on-year.