Paraguay´s soybean production and its relationship with the Argentine market

Argentina is the destination for approximately 70% of the soybean that is produced in Paraguay. Its oilseed industry is highly dependent on the Paraguayan crop, particularly in the first months of the year when the national harvest is not yet widespread.

This has two major effects: on one hand, it stabilizes the supply of raw material for the crushing industry and on the other, it improves the protein content in the mix of flour to reach the hi-pro standard, given the fact that Argentina´s soybean quality attribute (protein level) has been decreasing lately. This tight bond between countries is why potential delays in the harvest of Paraguay would affect the logistics of Argentine plants.