While many millions of hectares and tonnes of grain production have been added to the South American cropping profile, these increases are largely to blame for the glut now affecting world grain and oilseed prices.

For example, the soybean area has increased to more than 23 million hectares in Brazil in 2009-2010 compared with nine million hectares in 1979-80.

Over the same period, Argentina's soybean area jumped from 3.5 million hectares to almost 19 million.

This week's ABARE forecast papers predict that further increases in production will see these two countries competing strongly on world markets.

ABARE says further development of infrastructure and transport would "significantly enhance their competitiveness".