Rabobank expects Brazil’s 2026/27 soybean crop to fall amid pause in area growth
In Brazil, Reuters reported that the 2026/27 soybean crop in Brazil, set to be sown around September, is expected to fall 2% to 178 million metric tons from a record last cycle, while challenging market conditions may lead to a stabilization in the planted area, according to a Rabobank report.
The area planted with soybeans in Brazil is expected to “hit pause” on a sustained growth trend that has lasted more than two decades, having enjoyed an annual growth rate of roughly 4%, Rabobank said.
Farmer margins have been squeezed by low prices, tighter credit conditions, higher financing costs, and growing uncertainty over input markets, discouraging area expansion in Brazil, the world’s top soybean producer and exporter, the report said.
A normalization in average crop yields following a period of above-trend performance is expected to drive the projected soybean production decline in Brazil, the report added.
Category: Food & Agriculture
