en.Wedoany.com Reported - According to a report by the USDA Foreign Agricultural Service (FAS), Paraguay's soybean production, after reaching a record high in the 2025-26 season, is expected to reach 11.1 million tons in the 2026-27 marketing year, a decrease from the previous level. This is primarily due to a return to normal yields, while planted area remains relatively stable.

In its annual oilseeds analysis, the FAS indicated that the total soybean planted area in Paraguay is estimated at 3.5 million hectares, a slight decrease of 100,000 hectares year-on-year, with some land shifting to corn cultivation. The agency stated: "However, yields are expected to decline from record levels in the current season, as the anticipated El Niño weather pattern typically leads to unfavorable growing conditions in Paraguay, thereby reducing yields." This could lead to a production decrease of approximately 1 million tons.

Paraguay's soybean industry is heavily dependent on exports. Exports for the 2026-27 season are projected to fall to 7.3 million tons, a decrease of 1 million tons, aligning with the production decline and a normalization of demand from Argentina. Argentina, as a major trading partner, will continue to dominate soybean trade flows, with an estimated 75% to 85% of exported soybeans destined for that country to serve its crushing industry.

Due to declining profit margins, Paraguay's soybean crush volume is expected to slow to 3.6 million tons, a year-on-year decrease of 100,000 tons. Soybean meal production and exports are projected to fall slightly to 2.7 million tons and 2 million tons, respectively, although the expansion of the export-driven pork industry is expected to generate long-term demand growth. The European Union is expected to regain its position as the top market for Paraguayan soybean meal, followed by Chile, while the importance of the Argentine market will relatively diminish.

Soybean oil production is expected to decline slightly to 685,000 tons, with exports of 600,000 tons far exceeding domestic consumption. Brazil imports Paraguayan soybean oil as a biodiesel feedstock. The FAS stated: "Despite growing interest in renewable energy, including biodiesel, Paraguay currently lacks a large-scale domestic biodiesel mandate or refining infrastructure, limiting domestic soybean oil consumption."

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