According to data from the National Commodity Supply Company (CONAB) of the Ministry of Agriculture of Brazil, the country's soybean production is expected to reach 152.9 million tons this year, 21.8% higher than in 2022. China's demand for soybeans is rising, with imports increasing by 16% year-on-year in the first two months of 2023. The improvement of the economic situation and the decline in soybean prices may drive a rebound in China's import demand in 2023. Last year, China's soybean imports fell by 6% due to high soybean prices and low profit margins at Chinese soybean crushing plants.

Driven by increased production and demand, Brazil's soybean exports are expected to increase by 19% in 2023, becoming the main driving force for global grain exports. The supply of wheat and corn will continue to be tight, especially as Ukraine's production declines.