Drought denies Brazil its biggest soybean crop in history: Agrural

Brazil is no longer expected to deliver the largest soybean crop in its history as production estimates have been slashed by 11.3 million mt due to droughts in the south, local consultancy Agrural said Thursday.

Brazil’s soybean crop was previously estimated at an all-time record of 144 million mt but has now been reduced to 133.4 million mt, below the 137.3 million mt harvested in the previous marketing year.

“High temperatures and droughts that have been predominant in the south of Brazil and southern Mato Grosso do Sul since November have hit the soybean crop harshly,” Agrural said.

“[The reduced estimate is] based on an average yield of 54.8 bags per hectare, the lowest since the 2015/16 crop,” the consultancy added.

According to Agrural, the severest losses to date have been reported in the state of Paraná and yield prospects have also been cut in the southern states of Santa Catarina and Rio Grande do Sul.

In Rio Grande do Sul, “rains and milder temperatures are necessary immediately to prevent further estimate cuts,” Agrural said.

Mato Grosso do Sul’s yield estimates have also been reduced due to low rainfall volumes in the southern parts of the state, although expected losses are much less severe than in southern states.

Crop development conditions remain favourable in the rest of the country, with high yields expected in Brazil’s main producer Mato Grosso where harvest works have already begun.