Paraguay produced less than 3 million tonnes of soybeans in the 2021/22 marketing year. This was reported by Soybean&Corn Advisor, citing the forecast of analysts from the Paraguayan Grain and Oilseed Producers Association (APS), which recorded the lowest gross harvest of this crop in the country in its entire history.
“A severe drought in December-January and high temperatures led to a significant drop in soybean yields and a 70% decrease in gross yield compared to last year,” the report says.
It is worth noting that the estimate of Paraguay’s oilseed crop was initially much higher, at around 10 million tonnes – now this figure has more than halved.
“Many farmers in Paraguay who have forward contracts for the delivery of soybeans are now unable to meet their obligations. As a result, they cannot repay loans. These financial difficulties will negatively affect the prospects for the next soybean crop, which will be grown in Paraguay in August,” said APS.