Brazil's Big Soybean Boom: What's Driving the Record Harvest?

Soybean Production Set to Soar

Brazil is poised to make a significant impact in the soybean industry. By the 2025/26 season, the country is projected to produce a staggering 178 million metric tons of soybeans, according to Itau BBA. The U.S. Department of Agriculture (USDA) estimates a slightly lower figure of 175 million tons, but both numbers represent a massive output.

How is Brazil Achieving This?

• Expanded Farming: Farmers are cultivating approximately 1 million more hectares of land, equivalent to 2.47 million acres of new soybean fields.
• Challenges: Despite the growth, farmers are facing tighter profit margins, resulting in lower earnings per ton of soybeans sold.

Weather's Role

The La Nina weather pattern has caused irregular conditions, making planting more challenging, particularly between November and December. However, the forecast for the coming weeks is promising, with the central region—the primary producing area—expected to have favorable conditions, ensuring a successful harvest.

Corn Production: Overcoming Challenges

Late soybean planting can impact Brazil's second corn crop, especially in key center-west states. Despite this, Itau BBA's Agro Consulting team forecasts Brazil will produce 138 to 139 million tons of corn, surpassing the USDA's estimate of 131 million tons. In the 2024/25 season, Brazil produced 136 million tons of corn, according to the USDA.

The Big Picture

Brazil is emerging as a major player in the global soybean and corn markets. Despite facing some challenges, the country is on track to produce record amounts of these essential crops. This is excellent news for Brazil and the global food market.