Global soybean production for 2021/22 has been reduced by 9.2 million tons to 372.56 million metric tons in response to lower yields in South American crops, according to USDA Oil crop outlook report. Nevertheless, 2021/22 global production will eclipse the 2020/21 production of 366.23 million metric tons by 6.3 million metric tons, if realized.
Dry weather in Southern Brazil, Argentina and Paraguay through the early portion of the season has reduced the potential for bumper soybean production. Brazil’s soybean production has been reduced this month by 5 million metric tons to 139 million.
The anticipated reduction in soybean output is expected to lower 2021/22 global ending stocks by 6.8 million tons to 95.2 million, 5% below last year. This would be the lowest global soybean inventory since 2016/17.