Brazilian Crop Progress Raises Global Competition Pressure

Large Brazilian crops heighten downside price risk if the weather allows production to reach projected levels.

brazil flag_Photo by Feydzhet Shabanov via AdobeStock_310468831.png

Photo by Feydzhet Shabanov via Adobe Stock

LUBBOCK, TEXAS (RFD NEWS) — Brazil’s expanding crop production continues to reshape global markets, raising competitive pressure for U.S. producers as the Southern Hemisphere growing season moves forward. William Maples, Extension economist with Mississippi State University, says early indicators from Brazil suggest another year of heavy export competition for soybeans, corn, and cotton.

Soybean harvest has just begun, with national progress still below 1 percent as of mid-January. USDA projects Brazilian soybean production at 178 million metric tons, equivalent to roughly 6.5 billion bushels, which would mark a new record if achieved. Strong demand from China and Brazil’s B15 biodiesel mandate continues to support expansion. Exports are forecast at 114 million metric tons, or about 4.2 billion bushels, compared with projected U.S. exports of 1.6 billion bushels.

Corn outlooks carry more uncertainty. Brazil is projected to produce 131 million metric tons of corn, roughly 5.2 billion bushels, about 2 percent below last year. La Niña risks and delays in soybean harvest could limit planting of second-crop safrinha corn, which now accounts for nearly four-fifths of Brazil’s total corn output.

Brazilian cotton production is projected at 18.75 million bales, up 10 percent from last year, reinforcing Brazil’s position as the world’s leading cotton exporter.

Farm-Level Takeaway: Large Brazilian crops heighten downside price risk if weather allows production to reach projected levels.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
Analysts say drought, tight cattle supplies and summer grilling demand continue shaping the protein market outlook.
Senate Majority Leader John Thune says senators are trying to align the E15 effort with broader Farm Bill negotiations as producers continue grappling with weak farm income and elevated costs.
Soybeans accounted for nearly half of the $15 billion in losses on U.S. ag exports to China due to tariffs, according to researchers at North Dakota State University.
Feed grain supplies may tighten in 2026/27, supporting higher corn and sorghum prices despite large crops.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Global soybean competition is moving deeper into crush capacity, logistics, and value-added product control.
CME Group’s Fred Seamon joins us to break down the drop in farmer sentiment, discuss the role of input costs and global factors, and share his outlook for the ag economy ahead.
Cotton margins improved slightly, even as fertilizer and fuel costs rose due to the Strait of Hormuz disruption linked to the Iran war.
Flour milling demand stayed generally steady, but total wheat grind remained slightly softer year over year.
U.S. export inspections turned in another strong corn week.
The latest developments point to shifting export routes, higher congestion risk, and continuing cost pressure for grain, fertilizer, and energy shipments.