According to Safra & Mercado, Brazilian soybean acreage in 2017/18 season will hit a record high of 33.7 million hectares, according to Brazil’s Economic Value Report on July 25. However, the impact of unfavorable climatic factors, Brazil’s national soybean production will drop 0.2 percent to 113 million tons per hectare of production from 2016/17 3378 kilograms, down to 3205 kilograms.
According to the US Department of Agriculture statistics, China in the 2016/17 quarter total imports of 91 million tons of soybeans, 2017/18 season is expected to increase to 94 million tons. China’s import VAT of agricultural products from 13% to 11%, and the country’s pork production specialization is the main factor leading to the increase in soybean imports. As the market demand increased, relative to the high rate of return on corn, low cost reasons, Brazil’s central and western and southeastern areas of soybean planting area is generally increased, corn acreage declined.
From the Brazilian agricultural state Mato Grosso state 2017/18 planting season, this year, soybean production will decline slightly, but exports will continue to be driven by the growth of demand in China. According to the Mazhou Institute of Agriculture and Animal Husbandry predicted that 2017/18 season, the country’s soybean exports from the previous quarter of 17.14 million tons to 17.5 million tons, an increase of 2.1 percentage points. Although soybean acreage is expected to increase by 0.2% in September, production will drop by 2.1% to 30.58 million tonnes. The research institute technical manager Anji Lu Aazawa media said that China is buying large quantities of soybeans, but because of global production, did not lead to price increases. This year, in the state exports of 14 million tons of soybeans, 9.5 million tons were sold to China.
