Ag Outlook: Brazil is looking at largest soybean crop ever

Jan 31, 2023

Global economics and the impact for agriculture were a key focus during the Annual Ag Outlook yesterday.

Brad Magnusson, CEO of Magnusson Consulting Group covered a lot of ground from oil and gas prices to the war in Ukraine, and more. 

A key area of interest is the potential impact of an increase in U.S. acres.

He says the USDA is expecting to see an increase in soybeans, winter wheat and spring wheat, with corn acres jumping 1.9 million acres.

"Now what impact is that having? Well, first of all, we're starting to see fertilizers slide in the form of nitrogen. I think a lot of us including ourselves, bought expensive nitrogen in and around $1100 in the fall.  It's down to around about $910 yesterday ( Monday )."

He notes the biggest problem that a lot of fertilizer companies are having right now is delivery issues adding that he anticipates fertilizer prices will come back up as the demand increases.

Another key area to watch is Brazil, where they have a very, very large bean crop that could see production hit 154 or 159.1 million tonnes making it their largest soybean crop ever.

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