Soy overcomes delay in planting and sets record in 2020/21

Despite concerns about weather conditions in Brazil, after soybean planting began with delays, consultancy StoneX announced an increase in the production estimate for the 2020/21 harvest, by 133,9 million tons, this Tuesday (01/ 12), in its December review, against 133,48 million tons estimated in the previous month.

"This greater production was motivated by the growth of the planted area, of 180 thousand hectares, compared to November, with the national total reaching 38,3 million hectares", explained the group, in a report. On the other hand, there was a slight decline in average productivity, to 3,49 tons per hectare, as a result of the revised outlook for Mato Grosso, with the expected yield falling from 3,48 to 3,45 tons per hectare. It is noteworthy that some areas of the state registered the need for replanting, due to lack of humidity.

“In any case, the month of December will be decisive for the final result. If the rainfall pattern proves to be more regular and in good volumes, the prospect of a record harvest should consolidate”, he said.

Regarding the 2019/20 soybean crop, StoneX brought a small increase in production, to 124,53 million tons. However, ending stocks are expected to be even lower, at 310 thousand tonnes, as a result of the adjustment in exports, to 83 million tonnes.

For the 2020/21 cycle, despite the prospects of record production, at 133,9 million tons, demand is expected to remain strong, due to the devalued real, the high international demand for Brazilian grain and the firm demand from the meat industry domestic. “Despite optimistic expectations, the climate is expected to remain at the center of attention, amid potential losses due to the lack of rain”, summarized the consultancy.