Dec 11, 2023

2023/24 Paraguay Soybeans Recovering After Problematic Start

Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.

The 2023/24 Paraguay soybean production was left unchanged this week at 10.0 million tons and I have a neutral bias going forward.

Southern Paraguay recorded heavy rainfall over the weekend which is maintaining favorable soil moisture. The early soybean planting in Paraguay had a rough start with excessive moisture in southern Paraguay that caused problems with germination and emergence. In northern Paraguay, hot and dry conditions resulted in replanting and as much as a 60-day delay in planting.

Since then, the weather has improved and the plant development has been good, especially for the later planted soybeans. According to Ester Storch, director of the consulting firm DASAGRO, their initial estimate for the 2023/24 production was 9.8 million tons and that has subsequently been increased to 10.0 million tons and it could increase further.

Farmers in Paraguay have forward contracted 16% of their estimated soybean production as of the first week of December compared to 32% average.

In the December WASDE Report, the USDA left the 2023/24 Paraguay soybean estimate unchanged at 10.0 million tons.