WINNIPEG,(MarketsFarm) – When talking about South American soybeans, most times only a scant amount of attention might be paid to Paraguay. That’s because nearly all of the focus goes towards soybean powerhouses Brazil and Argentina.
Brazil was forecast to be the world’s largest soybean producer at 117.0 million tonnes in 2019/20, with Argentina third overall at 55.3 million tonnes, according to data from the International Grain Council (IGC). The United States was projected to be the second leading producer in the world at 96.8 million tonnes.
While a good amount behind, Paraguay isn’t a slouch when it comes to soybeans as the country ranks sixth in world production with 8.8 million tonnes, as shown by the IGC’s figures. The commission pegged Paraguay’s production to rise by 1 million tonnes in 2020/21.
Within North and South America, Paraguay is ahead of the rest of the pack after the big three, followed by Canada’s 6.0 million tonnes.
Soybean use in Paraguay ranks seventh in the world with 3.9 million tonnes. That’s expected to increase slightly to 4.1 million tonnes in 2020/21. The country’s exports of 5.0 million tonnes are fourth globally and will remain so in the coming year with a prediction of 5.8 million tonnes.
Paraguay started its 2019/20 marketing year in March with beginning stocks of 400,000 tonnes and that’s expected to drop to 300,000 for the next year.
Come the following February when all is said and done, Paraguay’s closing stocks are projected to be 300,000 tonnes and are expected to decrease to 200,000 tonnes the following year.
Global soybean production for 2019/20 has been forecast to decline by 5.2 per cent, according to the IGC, to 341.9 million tonnes. Beginning stocks were up 17.5 per cent at 54.3 million tonnes, while closing stocks are expected to drop by one-third at 36.2 million tonnes.