Some farmers in South America who usually plant a second crop of corn are now sowing a second crop of soybean instead after prices increased in relation to corn. Second-crop planting in the world’s top exporter, Brazil, could reach 1.9 million acres – up from just 130,000 acres last year, and farmers in Paraguay may plant up to 550,000 hectares of second-crop soybeans this year according to a report by Oil World. Soybean production in South America’s top five producing countries will be 151.45 million tons in the 2013/14 season – up 5.5% from the previous year and up from Oil World’s previous estimate of 150.6 million tons. Soybean prices increased approximately 3.4% over the past year even with the prospect of a record South American harvest as high demand from China has cut U.S. stockpiles. However, slowing demand from China and some cancelled orders indicate Brazil’s soybean exports may fall to 5 million tons for April from 6 million tons in March. This would be the first drop in soybean exports between March and April for Brazil in at least ten years.
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