Brazil: Oilseeds and Products Update
Link to report:
Post maintains its 2020/21 forecast for soybean planted area expansion at 38.5 million hectares (ha) and soybean production at 131.5 million metric tons (MMT). This season sowing was delayed by as much as six weeks in some areas of the country due to drier than normal weather. While these weather concerns herald potential trouble for the 2020/21 crop, it is too early to re-assess the yield forecast. Post maintains its 2020/21 soybean export forecast at 85 MMT. For the current 2019/20 season, Post revised down its soybean export estimate by 300,000 MT to 81.7 MMT, as Brazil simply ran out of soybeans by the last trimester of the MY. For the 2020/21 MY, Post maintains its soybean processing forecast of 45.5 MMT. Post revised the 2019/20 crush estimate by one MMT to 45 MMT of soybeans. The crush forecast and estimate is driven by strong domestic soy oil demand. With a voracious appetite for Brazilian soybeans by China, Brazilian soy stocks will hover at less than one percent of the domestic supply.
