Brazil’s soybean harvest reaches 45% of area

According to grain consultancy firm, AgRural, Brazil’s soybean harvest has reached 45% of the planted area so far in the 2018/19 season. The country has harvested 20% more compared to the previous year and significantly above the five-year average of 27%. Mato Grosso state has already harvested 80% of the fields.

China has agreed to import 10m tons of US soybeans as the ongoing trade war seems to be cooling off. The US usually ships 30m tons to China. The question is how this will affect Brazil’s soybean share to China. AgRural has lowered its estimate of Brazil’s soybean harvest to 116.9m tons down from 121.4m tons in November due to worse than expected dry conditions in the southern soy belt of the country.

According to Brazil’s Agriculture Ministry, the country’s agribusiness exports reached a record high in 2018, at US$101.7bn, up 5.9% year-on-year, mainly due to Chinese demand for soybeans.

The following DataLiner chart shows a year-on-year comparison of Brazil’s soybeans exports to China versus the world since 2009:

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