Paraguay to ramp up soybean planting area

With an increased planted area amid potentially drier conditions, Paraguay’s soybean production is projected to reach 10.3 million tonnes in marketing year 2024-25, up 200,000 tonnes from the previous year, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

Paraguay’s total planted area is forecast to increase slightly to 3.59 million hectares in 2024-25, up from the previous year on increased second crop, or zafriña, soybean planting, the FAS said in its April 4 Global Agricultural Information Network report. The planted area forecast for first crop, or zafra, soybeans is 3 million hectares with 700,000 hectares to be planted in the zafriña crop.

The zafra crop is planted between the end of August and the first half of November and harvested between the last days of December and the third week of March. The zafriña crop is planted in January to early February and harvested between late May and the end of July.

“With a La Niña year expected, yields could be lower due to the expected drier season but will be offset by increased zafriña planting,” the FAS said. “The La Niña weather pattern generally results in a drier year in Paraguay but is not expected to be catastrophic. Overall production and yields could decrease if a drier-than-average year arrives 2024-25.”

Paraguay’s soybean exports for 2024-25 are projected to fall to 6.5 million tonnes, down from 6.94 million tonnes in 2023-24 as Argentina’s production rebounds following record drought. Crush is expected to rebound to 3.5 million tonnes as fewer soybeans are exported to be crushed in Argentina.

Soymeal and oil exports are estimated down this year in line with decreased crush, driven by demand for whole beans from Argentina. Argentina was the second largest destination for Paraguayan soymeal in 2023 and is expected to be a more significant buyer than in the past. However, the European Union will remain the top buyer of Paraguayan soymeal.

At 10.1 million tonnes, Paraguay’s 2023-24 soybean production was revised downward from the previous estimate due to lower-than-expected yields in the main zafra crop harvest, which was completed March 21. Crush is estimated at 2.98 million tonnes in 2023-24.

Tags: soybean, sown area, Paraguay