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Soybean Sales Outperform

Higher bean production in Brazil; second bumper wheat crop for Australia

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PIXABAY
PIXABAY

USDA Attaché Report Sees Higher Bean Production in Brazil

  • The USDA FAS post in Brasilia released an attaché report yesterday forecasting 2021/22 planted acres for beans at 100.1 million acres.

  • This is up from 96.4 million acres the previous year, and marginally higher than USDA’s official 99.8 million for the current year.

  • As such, the FAS post sees production marginally higher than the official USDA numbers, 145 million tonnes versus 144 million.

  • However, exports are seen at 92 MMT, lower than USDA’s official 94.3 MMT, but still a record.

FBN’s Take On What It Means: The post sees global demand for soybeans to keep rising, increasing prices, and encouraging Brazilian farmers to expand planted acres and production. Accordingly, soybean exports are expected to reach another record in 2021/22. However, the post sees 2.3 MMT less exports than official USDA numbers on ample available supplies. Crush for 2021/22 was also revised down slightly from official numbers, but up from 2020/21 on increased supplies and demand.

FBN
FBN

USDA Attaché Report Sees Second Bumper Wheat Crop for Australia

  • The USDA FAS post in Canberra released an attaché report yesterday forecasting a second straight bumper wheat crop for Australia.

  • The post estimates 31.5 million tonnes of wheat production, down from the record 33.3 MMT last year, but still the third largest on record.

  • Rainfall has been good across the country’s growing regions, and forecasts over the coming months are also very favorable.

  • The consecutive bumper crops come following two years of drought, and as global grain demand is expected to remain high.

FBN’s Take On What It Means: Weather continues to be good for Australia and the FAS post sees another bumper wheat crop at 31.5 MMT, in line with official USDA numbers. Exports are also expected to be large at 23 MMT, down by just one million tonnes from the previous year; the post’s estimate is 500,000 tonnes lower than official USDA figures. In addition to wheat, sorghum, rice, and other summer crops are also expected to see large increases in production and exports year-over-year.

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