Agriculture
Climate is favorable and 2018 soybean crop is expected to hit a record figure: 115.6 million metric tons
May 10, 2018 09h00 AM | Last Updated: June 05, 2018 10h25 AM
Due to good climate conditions and a 2.6% increase in planted area versus 2017 (now 883,748 hectares), Brazil expects to have a record soybean crop in 2018, 115.6 million metric tons, which means an increase of 0.3% against last year. The result is part of the 4th estimate in the Systematic Survey of Agricultural Production, released today by the IBGE.
The Central West was the main Major Region accounting for the rise in the estimated national output (1.0%) versus what had been expected in the March release (114.5 million metric tons). This Major Region accounts for 45.7% (52.7 million metric tons) of the soybean harvest and recorded an increase of 1.8% (956.5 thousand metric tons) in the April estimate.
“There has been an estimated increase in the cerrado biome, where rainfall surpassed expectations. That part of the country holds most of the output, in Mato Grosso do Sul and in Goiás. The biggest decreases were registered in the South (Paraná and Rio Grande do Sul), areas recently hit by droughts", says Carlos Barradas, manager of the survey.
Even though the climate was adequate, the output increase is less related to productivity and more to the bigger estimated harvested area in 2018, 2.6% above the 2017 figure (34.7 million hectares versus 33.8).
“Soybean is a star in Brazilian Agriculture, and our producers usually prefer to have soybean crops in the summer. Last year, the climate was very goods. Now in 2018, after some delay, however, rainfall has been even greater, mainly in the cerrado," Barrada explains. “Average yield this year is expected to be 2% below that in 2017."
Another positive factor in 2018 is the favorable international scenario. According to data from the Center for Advanced Studies on Applied Economics (CEPEA), a bag of soybean would cost R$ 79.60 in April, 8.1% more than in March.
“That is a record harvest, and the price is very good because of the crop failure in Argentina and of the global scenario as a whole”, Barrada adds.
