Local soybean and corn prices are close to 2021 values in Argentina

Published 2022년 8월 1일

Tridge summary

The article highlights a notable decrease in local prices of soybeans and corn in Argentina, despite the ongoing conflict in Ukraine and Russia. This decline is primarily due to the substantial harvest of coarse grains, causing prices to drop by 25% for soybeans and 31% for corn since their peak in March. Despite these decreases, prices remain higher than the previous year, with corn being 14% above and soybeans 13% above last year's values. International prices in Chicago have risen due to concerns over Ukrainian export availability and high temperatures affecting U.S. production areas. Demand for Argentine corn has grown, with Vietnam and South Korea emerging as major buyers, while China, Vietnam, Uganda, Indonesia, and India are projected to show the most significant economic growth by 2030, potentially boosting demand for Argentine soybeans and corn further. Argentina's trade with these countries accounts for about a third of the foreign trade of the Corn and Soybean complexes.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

After reaching highs with the warlike outcome of the Russian-Ukrainian crisis, the local prices of soybeans and corn have been showing successive downward trends. The price drops are explained in part by the seasonal pressure of the Argentine thick harvest. As the new corn campaign begins in March and the soybean campaign in April, it is expected that prices will drop as coarse grains are harvested and exported. However, this year has been characterized by a particularly pronounced downward trend for coarse grains. Since the nominal maximums in mid-March, soybeans have accumulated a price drop of 25%, taking the CAC prices in pesos measured in buying dollars from the BNA. This panorama diverges substantially from what happened in previous years. Between April and the end of July 2021 and 2020, local soybean prices showed increases of 8.8% and 0.3%, respectively. If we go to the 2017-2019 triennium, we find drops of 2.2%; 7.5% and 2.2% for this same period. In the case of corn, the ...

Source: Chacra Magazine