Brazil and Argentina, the biggest soybean producers after the US, may harvest as much as a combined 120 million metric tons of the oilseed this year as rain boosts yields, Cargill Inc.’s Jose Luiz Glaser said.
Brazil is forecasted to produce a record 64 million to 67 million tons of soybeans, while Argentina will harvest a record 52 million to 53 million, said Glaser, head of Cargill’s soybean business in Brazil. Brazil’s output will increase from 57 million tons, and Argentina’s will rise from 35 million last year, he said.
The Pacific Ocean weather system known as El Niño is triggering above-average rain in central-western Brazil and in Argentina’s soybean belt.
“Rains are benefiting the crop in Brazil and may push yields even higher” said Glaser who added that crops in Brazil and in Argentina are in “really good shape”.
However Glaser admits that lack of sufficient transport and storage infrastructure will become the main challenge for the coming crops. “We will face a logistical blackout in the next few months,” he said.