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Brazil has achieved a significant milestone in its soybean oil trade, exporting 1.57 million tons between January and August 2026. This eight-month figure already surpasses the total export volume for the entire year of 2025, which stood at approximately 1.36 million tons. This surge is attributed to a strategic expansion in domestic crushing capacity and higher output, even as the local biodiesel sector continues to demand substantial volumes of oil. The Brazilian Association of Vegetable Oil Industries 'Abiove' anticipates that total exports for 2026 could reach 1.8 million tons.
Production forecasts for the year are equally robust. Abiove expects Brazil to produce 12.8 million tons of soybean oil in 2026, driven by an 8.2% increase in soybean crushing, which is projected to hit 63.5 million tons. While domestic biodiesel requirements remain a primary catalyst for the processing industry, the increased scale of operations has enabled the country to simultaneously bolster its presence in international markets.
The infrastructure supporting this growth has seen substantial investment. According to an Abiove survey from October, Brazil's annual oilseed processing capacity grew by 13.1% year-on-year, reaching 86.4 million tons. The industry landscape is also diversifying, with the number of active processing plants rising from 131 to 148, and the number of operating companies increasing from 75 to 89. This expansion reinforces Brazil's competitive edge in the global market for processed oilseed derivatives like oil and meal.
Looking further ahead, the National Supply Company 'Conab' released a forecast on October 15, projecting a record-breaking 2026/27 soybean harvest of 181.62 million tons. This represents a 0.7% increase, or 1.21 million tons, over the previous season. While the planted area is set to grow by 1.4% to 49.31 million hectares, average yields are expected to dip slightly by 0.8% to 3.68 tons per hectare.
Conab also predicts a 1.51% rise in soybean exports for the 2026/27 marketing year, reaching 117.97 million tons, while soybean meal shipments are expected to grow by 3.06% to 27.1 million tons. These figures underscore Brazil's dual strategy of maintaining its status as a top raw commodity exporter while aggressively scaling its value-added processing and export capabilities. The combination of record yields and expanded industrial capacity suggests a favorable outlook for the country's vegetable oil sector.
Source: UkrAgroConsult