Planting intention points to a new record área of soybeans in Brazil

144

     Porto Alegre, July 19, 2022 – Brazilian soybean growers must seed 42.88 mln hectares in 2022/23, the largest area in history, growing 2.6% over last year’s total planted area of 41.8 mln. The projection is part of the survey of planting intentions by SAFRAS & Mercado, released last Friday (15).

     With a possible increase in productivity, from 3,027 to 3,550 kg/ha, national production must surpass the one obtained this season. The initial forecast is for a crop of 151.5 mln tons, up 20.3% from 125.88 mln tons reaped this year.

     Once again, the great profitability of soybeans, supported by high prices, must encourage Brazilian growers to increase the area sown with the oilseed, even with the general increase in production costs. Compared to other cultures, soybeans have been delivering excellent profitability in recent years, which again brings a favorable environment to boost the area in the new season.

     In the Midwest, growers must keep focusing on the soybean crop in the summer area, leaving most of the corn production for the second crop. The positive highlight is again on Mato Grosso, which, despite already being the largest growing state in the country, must register a solid increase of 3.5% in the sown area compared to the 2021/22 season.

     In the South, the strong decline in production in the current season may prevent further growth of areas to be sown in Rio Grande do Sul and Paraná. Growers still feel some insecurity to expand their areas, given the financial problems resulting from large production losses. Anyway, some area growth is expected. The highlight of the region must be the expected recovery of average yield and production in the second- and third-largest soybean-growing states in the country. Anyway, it is important to remember that some meteorological models point to the maintenance of La Niña in the Brazilian summer, which is an important point of attention, especially for the South Region.

     In the Southeast, the good results of the current season stimulate growers, who must enlarge their areas by approximately 2.5% in the states of Minas Gerais and São Paulo.

     In the North and Northeast regions, SAFRAS expects the maintenance of the opening of new areas and expansion into degraded pastures in the country’s most recent agricultural frontier. In percentage terms, we must again see the highest growth in these regions.

     Brazil is preparing to sow a new record area of soybeans in the new season, which will bring new record production potential to the country. Should the weather be normal, Brazil will be able to surpass the incredible mark of 150 mln tons produced for the first time in history, consolidating even more the country as the largest grower of the oilseed in the world.