Soybeans market in South America

Earlier Report Observations

The soybean market in South America expanded from 85.2 million tonnes in 2018 to 98.1 million tonnes in 2019, driven by continued expansion of planted area in Brazil and robust global demand, particularly from China. The adoption of biofuels also began boosting domestic consumption of soybean oil. In 2020, the COVID-19 pandemic introduced volatility, leading to a slight market correction to 96.1 million tonnes as supply chains faced disruptions.

Market volume reached a peak of 101.5 million tonnes in 2021, supported by strengthening demand for biodiesel, which increased processing of soybeans domestically. However, in 2022, the market contracted sharply to 91.6 million tonnes. This decline was influenced by adverse weather conditions in parts of the region, geopolitical uncertainty following the war in Ukraine, and a spike in production costs, especially for fertilizers, which affected farmer profitability and output.

By 2023, production recovered, but the market size remained nearly flat at 92.4 million tonnes. Record harvests in Brazil were largely exported, keeping domestic availability stable. Persistent high input costs and downward pressure on prices due to ample global supply limited further growth in local consumption.

Production soybeans in South America

In kind, 2017-2020, M t

Top producers of soybeans, 2017-2020

World map of production of soybeans, 2017-2020

South America's soybean production increased for the second consecutive year. In 2020, the region produced 186.6 million tonnes of soybeans, marking a slight year-over-year advance of 1.4%. The lowest production volume was recorded in 2018 at 171.2 million tonnes, which saw the largest decline of 8.1%. The largest increase occurred in 2019, with production rising by 7.6%.

Annual dynamics of production in South America in kind, 2017-2020, M t

In value, 2017-2020, M $ US

After a two-year decline, South America's soybean production value increased. In 2020, soybean output was valued at 65,424 million US dollars, remaining broadly stable compared to the previous year. Over the period from 2017 to 2020, production value decreased by 6.9%, with a compound annual growth rate of 2.3%. The lowest value was recorded in 2019 at 65,141 million US dollars, which experienced the largest decline of 5.0%.

Annual dynamics of production in South America in value, 2017-2020, M $ US

Exports soybeans from South America

Exports in kind, K t

In 2020, South America exported 96,066 thousand tonnes of soybeans, showing a 6.0% increase year-over-year. Between 2017 and 2020, exports grew by 14%, equating to an annualized rate of 4.5%. The largest decline was recorded in 2019 at 2.3%, while the largest increase occurred in 2018 with a 10.1% rise.

Annual dynamics of product's exports from South America in kind, 2017-2020, K t

From 2017 to 2020, China remained the primary market for soybean exports in kind, accounting for 72.8% of total flows. The remaining volume was distributed across numerous other destinations.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South America in kind, 2017-2020

Exports in value, M $ US

In 2020, South America's soybean export value reached 33,682 million US dollars, up by 5.0% compared to the previous year. Over the period from 2017 to 2020, export value increased by 5.9%, with a compound annual growth rate of 1.9%. The highest value was recorded in 2018 at 37,190 million US dollars, which saw the largest increase of 16.9%. The largest decline occurred in 2019, with a drop of 13.8%.

Annual dynamics of product's exports from South America in value, 2017-2020, M $ US

Throughout 2017 to 2020, China remained the main destination for soybean exports in value terms, capturing 73.3% of total flows. The remaining share was distributed across various smaller markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South America in value, 2017-2020

Imports soybeans to South America

Imports in kind, K t

The market showed signs of volatility over the observed period. From 2017 to 2018, imports exhibited a peak-to-trough amplitude of 2.5 times. In 2020, soybean import volumes in South America totaled 5,581 thousand tonnes, up by 20.7% compared to 2019. The highest volume was recorded in 2018 at 6,825 thousand tonnes, which saw the largest increase of 148.8%. The largest decline occurred in 2019, with a drop of 32.2%.

Annual dynamics of product's imports to South America in kind, 2017-2020, K t

Over the period from 2017 to 2020, the United States remained the key source for soybean imports in kind, accounting for 23.9% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South America in kind, 2017-2020

Imports in value, M $ US

The data reveals irregular changes, indicating a volatile market environment. The period saw a trough in 2017 and a peak in 2018, showing a 2.5-fold swing. In 2020, soybean import values in South America amounted to 2,644 million US dollars, representing a steep uptick of 27.5% compared to the previous year. The highest value was recorded in 2018 at 3,105 million US dollars, which experienced the largest increase of 154.0%. The largest decline occurred in 2019, with a drop of 33.2%.

Annual dynamics of product's imports to South America in value, 2017-2020, M $ US

From 2017 to 2020, the United States consistently accounted for the largest share of soybean import value to South America, at 24.2% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South America in value, 2017-2020