BRASILIA, BRAZIL – Brazil is expected to process a record volume of soybeans in 2026/27 as stronger biodiesel demand and expanding livestock production increase domestic use.
USDA’s Foreign Agricultural Service forecasts soybean crushing at 65 million metric tons, up from an estimated 63.5 million this season. Soybean oil production is projected at 13.5 million metric tons, while soybean meal output is forecast at 50 million.
Domestic soybean oil consumption is expected to reach 7.7 million metric tons, up 11.5%, driven largely by an anticipated increase in Brazil’s mandatory biodiesel blend. Higher fuel prices are also supporting interest in domestically produced biofuels.
Soybean meal consumption is projected at 23 million metric tons as poultry and other livestock sectors expand. Meal exports are forecast at 27.5 million metric tons, up 5.7% from the current season.
The shift toward more domestic processing could limit growth in whole-bean exports while increasing Brazil’s competition in global soybean meal and oil markets.
Farm-Level Takeaway: Brazil’s expanding soybean crush could increase competition for U.S. meal and oil exports while supporting more domestic soybean demand.