The Brazilian Association of Vegetable Oil Industries (Abiove) believes that the country’s soybean production could reach 123.7 million tons in the current season, 2019/2020. The number is part of the entity’s current survey, released on Friday, 14.
The processing of soybeans in grain should reach 44.5 million tons in 2020, a record volume for the Brazilian industry. The production of soybean oil was updated to 8.9 million tons due to the growth in domestic consumption, mainly due to the growing demand for biodiesel.
“In view of the expectation of easing the trade war between the United States and China, the export scenario forecasts a 2% drop to the volume previously forecast, representing a projection of 73.5 million tons.”
The production of soybean meal should reach 33.9 million tons, according to the average yields of the sector. The forecast for domestic bran consumption in 2020 remained unchanged and, due to the expected growth of the feed market, represents an increase of 2.4% compared to 2019. Product exports were revised to 16.2 million tons, 6% above the last projection.
In relation to 2019, soybean processing was significantly increased to 43.4 million tons, a volume very close to the historical record reached in 2018, due to the good pace of the industry in the last quarter of the year. Exports of soybeans, now estimated at 74.1 million tons, are based on the calculation made by the Foreign Trade Secretariat (Secex).