Mato Grosso soybean exports poised to recover

Soybean exports from Brazilian central-western state Mato Grosso are expected to recover after a slowdown in the 2018-19 season on lower international demand.

Exports from Mato Grosso, Brazil's top grains producer, dropped in 2018-19 amid trade negotiations between China and the US and overall lower Chinese demand.

The state is estimated to export 19.56 million metric tonnes (t) of soybeans in the 2019-20 season, up by 2.22pc from the 19.13mn t estimated for 2018-19, according to the Mato Grosso Institute of Agricultural Economics (Imea). The 2019-20 estimate would still be under the state's record for soybean exports set in the 2017-18 season at 19.95mn t.

Production is expected to reach 33.01mn t in 2019-20, 1.57pc higher than 2018-19.

The corn exports forecast for the 2019-20 season in Mato Grosso shows a decrease of 4.74pc from the previous year to 18.91mn t on lower output. Delays in soybean planting may narrow the window for the second round of corn planting, which runs through late February. Imea foresees 31.62mn t corn production in 2019-20, down by 1.99pc from the 2018-19 crop.

The institute estimates cotton lint exports from Mato Grosso will decrease by 5.3pc to 1.273mn t in the 2019-20 season. Production is expected at 1.901mn t, down by 2.4pc from the estimate for 2018-19.