Source: Oleoscope (Russia)
Soybean production in Uruguay is set to rebound sharply in the 2026-2027 season. According to a report from the USDA Foreign Agricultural Information Service (FAS), the industry will fully recover from the dry previous season. Therefore, experts expect a significant increase in gross harvest and yield. Specifically, Uruguay soybean production 2027 will rise to 3.1 million tons, compared to 1.95 million tons in the 2025-2026 season. Furthermore, the cultivated area will expand by 50,000 hectares to 1.3 million hectares. As a result, yields will return to the national average of 2.4 tons per hectare.
Risks to Uruguay Soybean Production 2027
Nevertheless, FAS warns that heavy rains during the harvest period could reduce the forecast. For instance, excess moisture threatens to cause bean rot. Additionally, it prevents equipment from entering the fields.
Exports and Demand Outlook
Meanwhile, Uruguay plans to increase export shipments to 2.8 million tonnes. That is an increase of 700,000 tonnes compared to last year. China will remain the leading purchaser, accounting for 80-90% of Uruguay’s total soybean exports. Moreover, demand from China remains stable. In fact, it is the main driver of the industry. However, shipments to Egypt and Bangladesh continue to decline. At the same time, new major markets have not yet emerged. The service notes that the national moisture standard of 14% remains a constraint on international trade. This standard is higher than the preferences of most global importers.
Processing Sector and Imports
Despite the increased harvest, Uruguay’s processing sector remains stagnant. Specifically, processing capacity is limited to 150,000 tonnes. The main reasons for the low competitiveness of domestic plants are high operating costs and a lack of modern infrastructure. Consequently, Uruguay is forced to purchase soybeans from Paraguay and Argentina to cover its domestic deficit this season. However, according to FAS forecasts, the need for imports will practically disappear in the 2026–2027 season. This positive development will happen thanks to a high domestic harvest.