Datagro projects record in South American soybean area

The area to be harvested for soybeans in South America is expected to reach a new record in the 2019/20 harvest, at 60,58 million hectares, according to a new survey by consultancy firm DATAGRO. The result should be 2% higher than the previous season's extension, revalued at 59,43 million hectares. Potential production was revised to 197,23 million tons.

The stimulus variables for the increase in soybean area in South America are linked to prices that remained favorable to producers in the current season in the face of firm global demand and with rising export premiums offsetting losses from the trade war between China and the United States. United.

"In terms of production, depending on the behavior of the weather, the tendency is for South America to easily surpass the 2019 harvest, which was reduced by losses in Brazil and Paraguay, and establish a new historical record of 197,23 million tons ", explains Flávio França Júnior, coordinator of DATAGRO Grãos.

Despite the reservations regarding the weather conditions, the estimate is also of high productivity for soybeans in South America in the 2019/20 season, with 3.256 kg/ha, 3% higher than the 3.152 kg/ha of the current harvest, and above the record of 3.244 kg/ha in 2017. On the technological side, the trend is for producers to maintain positive use of agricultural inputs.

"This good result in terms of production will be essential to guarantee a minimum income for producers, if the projection of prices below the historical average in the international market is confirmed (in case of no agreement between the USA and China)", highlights França Jr.

In DATAGRO surveys by country, there is a projection of an increase in the area sown in Brazil to 37,03 million hectares, an increase of 3% compared to the 2018/19 season and a record production of 126 million tons. Expansion occurs in pastures, sugarcane areas, and, to a lesser extent, new locations.

In Argentina, the soybean area was estimated at 18 million/ha and a 1% increase compared to the 2018/19 season, totaling production of 55,18 million tons, and Bolivia will see an increase of 2%, to 1,35 million/ha. ha and 3,10 million/t.

In Paraguay, the estimate is for a 9% reduction in the area compared to 2018/19, totaling 3,40 million/ha in the 2019/20 harvest and production of 9,94 million/t. In Uruguay, the expectation is to maintain the extent of soybean production at 1 million/ha and production estimated at 3 million tons.