MercoPress. South Atlantic News Agency

Uruguay´s soybean crop forecasted to drop 43% because of devastating drought

Soybean production is forecast to drop to 1.7 million tons in 2017-18, according to an April 30 GAIN report from the U.S. Department of Agriculture.

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.