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October 11, 2017

2017/18 Brazilian Soybean Acreage Increase by Regions

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

As Brazilian farmers start to plant their 2017/18 soybeans, the soybean acreage in Brazil is expected to increase approximately 2.7% in 2017/18. The new soybean acreage is coming from two sources - farmers switching some of their full-season corn acreage to additional soybean production and the continued conversion of degraded pastures to soybean production.

The largest soybean producing region in Brazil is the center-west region which encompasses the states of Mato Grosso, Goias, and Mato Grosso do Sul. The soybean acreage in the region is expected to increase approximately 2% to 15.59 million hectares. The vast majority of the increased soybean acreage in Mato Grosso comes from the conversion of degraded pastures to soybean production. In the state of Goias, the increase comes not only from the conversion of pastures, but also from switching full-season corn to soybeans.

Farmers in Mato Grosso have forward contracted approximately 25% of their anticipated 2017/18 soybean production compared to 40% last year at this time. Most of the forward contracting has been in the form of barter where grain companies provide inputs to farmers in exchange for the farmers delivering a set quantity of soybeans after harvest.

The second largest producing region in Brazil is southern Brazil, which encompasses the states of Parana, Santa Catarina, and Rio Grande do Sul. This region is expected to increase the soybean acreage by approximately 2.8% to 11.78 million hectares. This is the largest full-season corn producing region of Brazil and virtually all of the increased soybean acreage will comes as a result of switching some of the full-season corn to additional soybean production.

The third major soybean producing region is northeastern Brazil, which includes the states of Bahia, Maranhao, and Piaui. This region is expected to increase the soybean acreage by 4.5% to approximately 3.23 million hectares. This region has exhibited the largest percentage increase in soybean acreage in recent years with the increases coming from new land being brought into production. In 2017/18, some of the increased soybean acreage will come from a reduction in full-season acreage as well.