Government agency Conab expects the Brazilian soybean and maize acreage to grow further in 2021, which means that the yields are now also estimated to be higher. The increase in acreage is partly due to an expected growth in the demand for soy and the increasingly better export of maize.
Conab expects Brazil to have a soybean acreage of 2021 million hectares in 37,85, which is an increase of 2,8% compared to last year. The government agency estimates the maize area at 19,8 million hectares, an increase of 7%. The new data illustrates that Brazil's soybean and maize acreage has increased significantly in recent years: soybean acreage has increased by 10% in 56 years and maize acreage has increased by 43% over the same period.
More demand for soy
As a result of a larger soybean acreage, Conab also expects that the yields will increase considerably. For 2021, it foresees a harvest of 133,5 million tons, which is 7,3% higher than in the previous season. The increase in acreage does not come as a surprise, because the cultivation of the crop has been very popular with Brazilian arable farmers for years. This is now being reinforced by a growing demand for soy, both domestically and for export.
This is substantiated by Conab with the fact that 40% of the harvest has already been sold at the beginning of August, compared to only 20% last year. It is a historic result. This is also partly due to the depreciation of the Brazilian currency, which made soybeans attractive on the world market. Between January and July, the country exported 70,7 million tons of soybeans, up from 1 million tons the year before.
For the current season, the Brazilian government expects soybean exports of 82 million tons. In the 2021 season, the export figure may increase to 86,8 million tons, mainly as a result of high imports from China and the favorable exchange rate.
Improved situation on maize market
Conab expects the increase in the maize area leads to a yield of 113 million tons of maize in 2021, an increase of 12%. The increase in acreage is largely supported by positive expectations for exports. For example, the government agency expects ethanol factories to demand more maize again, and slightly more demand is also expected from the forage trade.