Paraguayan soybean production will see modest growth from a high base out to 2021 as furthergains in acreage and yields will be difficult to achieve. Similarly, beef production will only grow moderatelyas key structural impediments prevent stronger and steadier gains. The trade outlook is positive for bothbeef and soybean.
Soybean production growth from 2015/16 to 2020/21: -7% to 9.9mn tonnes. Out to 2020/21, weforecast modest growth in soybean output as agronomic constraints (yield and acreage) and a strongercurrency will offset the benefits of higher USD prices for Paraguayan producers. Record high base effectsalso inform our forecast for lower production.