The US Department of Agriculture (USDA) has raised its current outlook for global soybean production for the 2018/19 marketing year significantly. The reason is an unexpectedly strong increase in US crop expectations for 2018.
According to the outlook, the US could harvest just less than 125 million tonnes of soybeans. This would be up around 5 million tonnes year-on-year and just about 8 million tonnes more than expected in July.
According to information published by Germany-based Agrarmarkt Informations-Gesellschaft (AMI), the US soybean acreage is slightly smaller than 2017. However, virtually optimal growing conditions could raise yields to a level more than 5 percent higher than the previous year.
The forecast for Brazilian soybean production in 2019 is unchanged at just less than 121 million tonnes, an increase of 1 million tonnes from the previous season.
Argentina is expected to reach an average level of 57 million tonnes in 2019, following drought-related losses of about 20 million tonnes in 2018. Against this background, the USDA projects world soybean production in 2018/19 at 367 million tonnes, which would be up 30 million tonnes year-on-year.