Brazil: Oilseeds and Products Update

Post maintains its forecast of record soybean production in Brazil for MY 2026/27, driven by expanded planted area and a modest yield improvement. Favorable early-season rainfall has supported planting across major producing regions, but persistent rain in Rio Grande do Sul and forecasts of severe weather in several states could hurt crop development. Post expects most weather-related concerns to affect harvest operations more than planting. Production costs are projected to increase further, driven primarily by higher fertilizer and crop protection costs, while domestic soybean prices are supported by stronger crushing demand and anticipated growth in biodiesel consumption. Domestic soybean processing is forecast to reach another record, supporting increased soybean meal and oil production. Export growth should keep pace with rising production, even as sales to China slow and global trade patterns shift.