World’s top soybean producer, Brazil seen relying on imports in new year

Brazil, the world’s largest soybean producer, will likely import larger-than-usual volumes of the oilseeds next year to cater to domestic demand, oilseeds crushers’ association Abiove told a news conference on Monday.

At the same time, internal demand is heated, Brazil will continue supplying its most prized export commodity to global clients, leaving little to crush internally, Abiove said.

Brazil’s 2021 soybean imports will be 800,000 tonnes, up from 500,000 tonnes projected in November, according to Abiove data. This year, Brazil will likely import 1 million tonnes, an all-time record, it showed.

Brazil’s soy suppliers are mainly in South America, but this year the country made a rare purchase from the United States.

Brazil has emerged as a significant soybean producer and competitive global exporter over the past few years, but demand from buyers like China depleted local stocks in recent months.

This year, Brazil’s end stocks are estimated at 219,000 tonnes and next year they will be 419,000 tonnes, according to the association.

Brazil’s farmers will reap a forecast 132.6 million tonnes of soy in 2021, up from an estimated 127 million tonnes in the previous year, Abiove said. It is being planted now, but a drought may hit output and yields.

On export markets, Brazil’s sales are forecast to reach 83.5 million tonnes in 2021, 1.2 million tonnes more than this year, Abiove predicted.

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Tags: Brazil, world's top soybean producer