USDA Reports Falling Worldwide Soy Production

USDA says that the 5 million tons of soy produced during the 2011–2012 season is a 40% drop from last year. Harvested land for soy is also 9% lower than last year. The USDA is expecting an estimated 34% reduction in yield this year. Decreased soy production is largely attributed to less-than-ideal rainfall in key growing regions. Lead soy producers taking a hit during this season include Paraguay, Argentina, and Brazil.

Mar 13 2012 --- A USDA report on soy production says that worldwide production is falling significantly.

USDA says that the 5 million tons of soy produced during the 2011–2012 season is a 40% drop from last year. Harvested land for soy is also 9% lower than last year. The USDA is expecting an estimated 34% reduction in yield this year.

Decreased soy production is largely attributed to less-than-ideal rainfall in key growing regions. Lead soy producers taking a hit during this season include Paraguay, Argentina, and Brazil.

The USDA estimates 2011/12 soybean production at 5.0 million tons, a drop of 22 percent from last month and 40 percent from last year. Harvested area is expected to be down to 2.6 million hectares, a 7 percent drop in area from last month and a 9 percent loss from last year. Yield is expected to drop to an average of 1.92 tons per hectare, a 16 percent loss from last month and a 34 percent loss from last year. Heavy rains that recently occurred have hampered harvest progress and will not benefit the crop.

Argentine farmers are expected to bring in 46.5 million tons of soybeans for the 2011/12 season, 3 percent less than last month and 5 percent less than last year. The production will be harvested from an estimated 18.6 million hectares, 2 percent more area than last year and the same as last month. Yield is expected to fall to 2.50 tons per hectare, 3 percent lower than last month and 7 percent lower than last year.

Brazil soybean production for 2011/12 is forecast at 68.5 million tons, down 3.5 million from last month and down 7.0 million or 9 percent from last year. Area is forecast at a record 25.0 million hectares, unchanged from last month and up 0.8 million or 3 percent from last year. Yield is forecast at 2.74 tons per hectare, down 5 percent from both last month and the 5-year average. Drought from December through February significantly reduced yield prospects in the southern states, and favorable yields in the center-west and northeastern states will not compensate the considerable losses in the south.