(Bloomberg) -- Brazil soybean acreage is poised for its slowest expansion in almost two decades as lower prices have eroded farmers’ profit margins.
Growers will plant 47.3 million hectares (117 million acres) with the oilseed this year, up 1.9% from 2023, consulting firm Safras & Mercado said Friday. That would be the smallest percentage growth since 2006, when the area shrank for the last time.
A slowdown in Brazil after years of rampant production growth comes as the outlook for record global inventories have weighed on prices for soybeans, which is used in everything from chicken feed to green diesel. That’s welcome news for US farmers, who have struggled with fierce competition from the world’s largest supplier of the commodity. It’s also illustrative of the credit constraints faced by Brazilian producers, who have defaulted at a record number this year.
Brazil soybean planting typically begins in September, with the harvest starting in January. The South American nation may still produce a record 171.5 million metric tons of the oilseed this season, assuming a 11% increase in crop yields, Safras said.
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