Soybean crops in Brazil, Paraguay and Argentina lead production in Latin America
Soybean crops are looking to recover in the world economy, for which Brazil, Paraguay, and Argentina are key countries in their production.
The world soybean crop is looking to recover its indicators for 2022. Soybean is one of the most important raw materials in the world economy since it is used, among other things, for human food and animal nutrition. For this reason, soybeans are a commodity of great importance in the international agricultural and livestock sector, as well as in the world’s main economic exchanges.
Currently, the price of raw materials such as soybeans has increased because of changes in the availability of the product on the market. In February, the price per ton of soybeans was close to USD 500 on the Chicago Stock Exchange. In addition, for months there has been a bottleneck in global distribution and transportation due to the container crisis in seaports.
By 2022, recent projections indicate that Brazil expects to achieve a production of between 134 and 125 million tons. These forecasts were reduced by 5 million tons compared to January 2022 due to weather conditions in Brazil.
In some soybean production areas of Brazil such as Mato Grosso Do Sul and Paraná, dry weather has affected crops due to droughts. At the same time, other areas of the country have been affected by excessive rainfall that has flooded soybean fields and other major grains. Much of this extreme weather has been associated with the “La Niña” phenomenon that has also impacted the northern areas of Argentina and Paraguay.
Soybean situation for Argentina and Paraguay
In Argentina, the production of 40 million tons of soybeans was forecast for this year. However, droughts in recent months and some forest fires have affected Argentina’s production capacity, especially in the north. Rainfall is expected to increase during 2022, as soybeans represent one of the most important revenues in Argentina’s economy thanks to its exports.
On the other hand, Paraguay is one of the main soybean exporters in Latin America, with close to 3,700,000 hectares of soya per year. These soybean crops are mainly located in Itapúa and Colonias Unidas, representing almost one-third of the national soybean production.
However, droughts in 2022 have also affected soybean production in Paraguay. This year’s production is forecast at 4 million tons of soybeans. This figure represents a significant reduction compared to previous years. Finally, the soybeans produced in Paraguay are mainly exported to Argentina for processing and use in by-products.
Finally, it should be noted that despite the projected figures for soybean crops for 2022, these are still higher than in 2021. In Brazil, Argentina, and Paraguay, the leading soybean-growing countries in Latin America, production this year is expected to far exceed last year’s production.