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
Ag Secretary Brooke Rollins hints at new fertilizer plan while trade deals, soybean markets, and farm bill momentum drive ag policy discussion.
Effort aims to reduce wildfire risk and restore forests
High prices alone may not drive herd expansion.
Cotton may gain demand as polyester costs rise.
ASFMRA’s Dennis Reyman joined us to discuss planting progress, crop trends, grain movement, and farmland market activity in Iowa.
RealAg Radio host Shaun Haney joins us to discuss Canada’s advisory committee and the upcoming USMCA review and its potential impact on agriculture.

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:

U.S. pork production is rising slightly, driven by steady domestic demand, prices, and expanding global meat export markets beyond China.
A prolonged Iran ceasefire offers limited relief as fertilizer concerns persist, prompting U.S. policy shifts and driving farmers to reconsider crop acreage.
California rewards low-carbon ethanol, not higher blending volumes.
Strong corn exports support demand while soybeans lag.
Strong exports and prices are helping offset rising milk supplies.
RealAg Radio’s Shaun Haney discusses the DOJ investigation into U.S. beef packers, concerns about cattle pricing, and ongoing trade and animal health issues affecting producers.