Latin America: will it continue dominating agricultural markets?

26.04.2018

Soybean harvested area in South America has expanded significantly since the 2000/01 season. It more than doubled to 58.4 Ml ha, while U.S. soybean plantings increased just to 36.2 Ml ha, reports UkrAgroConsult on the basis of presentation provided by Pedro Dejneka, Partner, MD Commodities, Brazil during the XV International Conference “Black Sea Grain - 2018”, April 18-19, 2018, Kyiv, Ukraine.

South American soybean production in the 2017/18 season is estimated at 174.5 MMT. The 2018/19 prospects look very bright: the crop is expected to hit a new high that may even exceed 200 MMT.

The export share in South American soybean production is on the rise – it will reach 56% in the 2017/18 season. In the U.S. this percentage has lately dwindled to 37%.

Soybean production in Brazil is focused on export. The export share in its total volume has grown from 33-39% to 61% over the past 18 seasons.

Brazilian soybean exports feature a seasonal pattern. Traditionally, the busiest are the months of March to June. This season Brazil announces a record monthly total of soybean exports, which is expected to reach 10.75 MMT.

Taking into account the current trends and long-term plans in the soybean segment, Brazil is not going to “give up ground.” On the contrary, the nation intends to boost its influence in this market.

Moreover, by 2025, Brazil will focus on developing transport infrastructure in order to enhance its position in global markets, particularly in the market of soybeans. It is planned to increase the rail and waterway share in shipments. Now the key role in soybean exports is played by ports of the so-called “Northern Arc.”

Full version of the article is available to subscribers for weekly market report “Black Sea Vegoils” and “Online market review” by UkrAgroConsult.

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