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February 12, 2020

February WASDE Increased Soybean Production in South America

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

In their February WASDE Report, the USDA increased their estimate of the South American soybean production. For Brazil, they increased the 2019/20 Brazilian soybean crop by 2.0 million tons to 125.0 million. Brazilian soybean estimates have been increasing in recent weeks due to improved conditions across much of Brazil with the exception of far southern Brazil where it remains too dry.

The 2019/20 Argentina soybean estimate was left unchanged this month at 53.0 million tons. The 2019/20 Paraguay soybean estimate was actually reduced 0.3 million tons to 9.9 million.

The 2019/20 South American corn production estimates were left unchanged in the February WASDE. The USDA estimated the 2019/20 Brazilian corn production at 101.0 million tons. There are actually three corn crops in Brazil - the full-season corn crop planted mainly in southern Brazil, the safrinha corn crop planted after the first crop of soybeans are harvested, and the third corn crop planted mainly by small family farmers in northeastern Brazil.

Although the USDA did not break out the production of the three corn crops, in the most recent estimate by Conab, they estimated the full-season production at 26.0 million tons (26% of Brazil's total corn production), the safrinha corn production was estimated at 72.9 million tons (73% of the total), with the third crop estimated at 1.1 million tons (1% of the total).

The 2019/20 Argentina corn estimate was also left unchanged this month at 50.0 million tons.