BRASILIA, BRAZIL — Brazil is expected to produce a record soybean crop in 2024-25 of 161 million tonnes, a 6% increase from last season, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA).

Year-on-year yield gains are expected due to adoption and investment in technology, including genetically engineered seeds and chemicals and fertilizers.  

Despite low prices, Brazilian farmers continue to expand soybean production, the FAS said, because it is more profitable than corn and relatively easy to grow.

“Given that the global demand for soybeans is expected to keep rising, Brazilian farmers will continue to expand their soybean production, with assurance that buyers will be ready when the harvest hits the market,” the FAS said.

Record exports of 102 million tonnes are also expected, up from 99 million tonnes last season.

“The forecast is based on increased expectations of ample available supplies and an extremely favorable exchange rate,” the FAS said.

About three-quarters of shipments were destined for China, which has long been the main buyer of Brazilian soybeans.

Soybean crush in 2024-25 is estimated at 55.5 million tonnes, an increase of 2.5% from the 2023-24 estimate. The increase is based on larger supplies as well as an increase in demand for soybean products.

“The expansion is based on the available soybean supply and rising demand for both soy oil and soy meal domestically, as well as soy oil and meal export demand which will be supported by the continued relative weakness of the Brazilian real,” the FAS said.