Farmers from Brazil are expected to plant another record soybean crop. This would be the 12th consecutive year that Brazil plants a record land area of soybeans, amid strong demand from Asia.
Reuters reports that Brazil is likely to expand the area to a record 36.28 million hectares, the equivalent to 89.65 million acres, this season, which farmers will start planting around September. The expected planted area represents a 3.2 percent expansion from the previous growing cycle.
A Rabobank analyst says the trade war between the U.S. and China is supporting Brazilian soybean prices in the export markets and could be a contributing factor to the increase. Brazil, the world’s largest soybean exporter, is expected to collect an estimated 119.76 million metric tons of the crop in the next growing cycle, up 0.65 percent from the last growing season.