Due to the recent devastating drought, soybean production in Uruguay is forecast to drop to 1.7 million tons in 2017-18, according to an April 30 Global Agricultural Information Network (GAIN) report from the U.S. Department of Agriculture.
This is a drop of 43% compared to the USDA’s original estimate of 3 million tons. As of March 23, only 3% of the crop had been harvested, the report said.
“Overall, producers will suffer noteworthy losses due to lower yields,” USDA said.
“Land-owning producers may break even or achieve minimal returns without the additional rent expense, but based on information from local contacts, producers on rented area may lose at least US$ 205 per hectare.”
Soybean crush for 2017-18 is revised down to 60,000 tons — a 20% decline from the previous crop year — due to lower soybean supplies.
The USDA forecasts a recovery for both soybean production and crush in 2018-19. It predicts output of 3 million tons and crush at 80,000 tons, which is a return to pre-drought historical levels.