Drought affects Paraguay’s soybean harvest

The Paraguayan Grains and Oilseed Traders Association (Capeco) reported a loss of 1.3m tons of soybean crop due to worse than expected dry conditions in the country from November through January. Across the border, Brazil has suffered from the drought as well. Brazilian food supply and statistics agency, Conab, has reduced Brazil’s soybean harvest estimate from a more optimistic forecast of 118.8m tons in January to 115.34m tons.

Capeco has reduced the Paraguayan soybean yield forecast to 8m tons in the 2018/19 season. The previous cycle produced 10m tons. According to Capeco, the country has already harvested 70% the planted area, equivalent to 3.5m hectares.

According to the organ’s website, Paraguay’s soybean productivity was between 1,500kg and 1,800kg per hectare at the beginning of the harvest in December. However, productivity has since increased to over 2,200kg per hectare in January.

The following graph based on Capeco data shows Paraguay’s year-on-year export trends since the 1992/93 crop cycle: 

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