2013/14 Brazil to produce 85 million tons of soy and a further 85 million tons of corn
The record-breaking forecasts come from the CELERES consulting institution. The area under soybean cultivation is set to increase by a further 4.8 %.
Almost 40 million tons of beans can be processed domestically. The soybean oil is used for food purposes and for the production of biodiesel. The soybean meal produced is needed to a certain extent for the country's own refining industry, a world leader in poultry meat production and a considerable pig farming industry, which ranks 5th in the world.
The remaining beans are exported, mainly to China, but also to some other Asian importing countries.
Celeres emphasizes that Brazilian farmers are financially well equipped and will take on the higher risk of soybean production. Former maize-growing areas in the south of Brazil are increasingly being used for soybean cultivation.
The currency conditions of a weak REAL favor export sales compared to competing countries with a fixed currency.
A record year for soybeans is set to be followed by another. Let's wait and see. The weather in South America is always good for surprises. If it's not "El Nino", it could be "La Nina".
