Brazil records record soybean harvest as exports rise, cattle prices climb

Brazil is projected to achieve a record soybean harvest of about 180.3 million tonnes, driven by expanded planting area and higher productivity, according to CONAB. The strong outlook is reflected in a 2.9% price increase for soybeans on the Chicago Board of Trade in May, reaching an average of US$12.01 per bushel, supported by expected strong demand from the United States, potential higher exports to China and growing use of soy oil for biodiesel.

BB Investimentos notes that the surge in soybean production could benefit Brazilian grain exporters, though an oversupply might temper price gains. In the livestock sector, cattle remain the strongest protein source, with producers holding back stock for breeding, a classic sign of future supply tightening that should support beef prices. Poultry sales are growing but profitability lags, while pork faces weaker exports and lower prices.