Mercosur soy output seen rising in 2025/26 despite smaller planted area

SAO PAULO, Nov 3 (Reuters) - Soybean production in South America's Mercosur bloc is expected to grow by 0.8% year-on-year in the 2025/26 season, agribusiness consultancy Celeres said on Monday, despite a slight reduction in the area planted with the oilseed.

WHY IT'S IMPORTANT

Mercosur is a key player in the soybean market, having accounted for 62% of global exports over the past five years, according to Celeres.

The bloc includes Brazil, the world's largest soybean producer and exporter, as well as Argentina, Paraguay and Uruguay.

BY THE NUMBERS

Total Mercosur soybean production is forecast to reach 242.3 million metric tons in 2025/26, Celeres said in a report, up from 240.4 million tons in the previous cycle.

Planted area is seen dropping by 0.4% to 72 million hectares (177.9 million acres), driven mainly by a 1.3 million hectare reduction in Argentina, offset partially by a 1 million hectare increase in Brazil.

But favorable weather should help drive yields to 3.4 tons per hectare in the period, up from 3.32 tons per hectare last season.

KEY QUOTE

"Despite the depreciation of the U.S. dollar against local currencies, exports from the region are projected to rise consistently by around 5 million tons, reinforcing Mercosur’s leading role in global soybean trading," Celeres said.