Brazil will surpass the United States as the world's largest soybean producer

Brazil is again on the verge of stealing the United States the title of the largest soybean producer in the world.

The South American country, which It is already the biggest exporter, will probably harvest around 123 million tonnes of oilseeds for the 2019-2020 season, with which it will exceed the crop of its northern rival of $ 112.9 million, according to data from the US Department of Agriculture.

The US crop is projected to drop from last year's record high, as the country's trade war with China challenges exports and encourages farmers to cut back on plantations. Brazilian producers benefit from slightly better prices for their supplies. According to data from the USDA, the Brazilian harvest has exceeded US production only once before, during the 2017-2018 season, until 1963.

Brazil has overtaken the United States leading soybean exporter for the 2012-2013 season, the gap between shipments between the two countries has further widened over the past year, the rebound of the rights of customs forced Chinese buyers to turn to Brazilian suppliers

Meanwhile, Brazil is taking advantage of trade tensions – expanding its planted area, which may involve cutting down forests – to supply soybeans to China, said Hubertus Muehlhaeuser, managing director of CNH Industrial NV. The longer the constraints last, the more the overall capacity increases and the prices increase.