Post projects marketing year (MY) 2022/2023 soybean production at 10 million metric tons (MMT) on 3.45 million hectares as Paraguay rebounds to more normal conditions following a significant drought. MY 2022/23 exports are projected at 6 MMT. In MY 2021/2022, sustained dry, hot weather substantially reduced soybean yields to historic lows, with final production projected at 3.9 MMT. As a result, in MY 2021/2022 domestic processing is projected to fall to 1.8 MMT and exports to 2.27 MMT. Drought conditions have also reduced the quality of the soybeans causing difficulties for the processing sector.