Soybean processing in Argentina is expected to grow by 44% this year

Published 2024년 10월 24일

Tridge summary

The Rosario Stock Exchange (BCR) reports a significant recovery in Argentina's oilseed processing industry for 2024, with a 37% increase compared to 2023, following a record low crush in the previous year due to a severe drought. This recovery is expected to decrease the industry's idle capacity from 54% in 2023 to 36% in 2024. Despite the drought, sunflower processing is projected to see a modest growth in 2023, while soybean processing is expected to surge by 44%. The rebound is attributed to productive recoveries in various sectors and significant soybean imports, with the industry showing signs of returning to more substantial activity levels.

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

Original content

Oilseed processing is expected to grow by 37% in 2024, after having recorded the lowest crush in more than 20 years. In the case of soybeans, processing is expected to grow by 44%, while in the case of sunflowers it will close the year 12% below 2023, according to a report prepared by specialists from the Rosario Stock Exchange (BCR), Guido D'Angelo, Emilce Terré and Julio Calzada. The report highlights that if this forecast is met, the idle capacity of the Argentine oil industry would go from the record of 54% recorded in 2023 as a result of the drought, to 36% this year. In 2023, the oilseed crushing industry worked at less than half its capacity, which not only implied the largest unused capacity in the oil industry in its history, but also exceeded by more than 11 points the highest previous level of underutilization, 43% in 2020. The worst drought in the last sixty years strongly impacted the 2022/23 soybean harvest, which led to the oilseed crush at its lowest level in 22 ...

Source: Suenaacampo