Brazilian Soy Production
Brazilian soy suppliers CJ Selecta, Caramuru and Imcopa have implemented a 100% deforestation-free and conversion-free soybean value chain. It is a next step after the previous agreement that applied only to the Amazon rainforest. Representative of CJ Selecta said that this decision was made as an answer to “demands of civil society”. Those three companies direct their supply to Norway’s salmon industry. With this decision they want to put pressure on big players such as Bunge and Cargill. The former made a statement to resign from supply from legal deforestation by 2025, which will be the earliest in the industry. Only 0.5% of total soy production goes to aquaculture feed, so the pressure is now on other animal feed sectors to follow.
Brazilian soybean production
Brazilian soybean production for the season 2020-21 will be 134.95 million MT, which is an increase of 8.1% and all-time high. Moreover, the soy yield is forecast to be up by 4.2% to 3.53 MT/ha. In the period of January-October 2020 Brazil exported 81.4 million MT of soybeans which is a staggering increase of 24% YOY. 73% of shipments were directed to China, which remains the largest consumer. Due to not-decreasing demand, the soy exports in 2021 are predicted to be 3.7% higher.
Soybean price forecast
The high sales of soybean reduced Brazilian supply and thus pushed up the prices. Moreover, dry weather in the USA further accelerated this trend. Due to bad conditions the US estimated output is down by 4 million MT. Tight supply and high demand will be a major influence factor for rising soybean prices. Specialists claim that the stock will remain low through 2021.