Argentina: The price of the main exportable product of agribusiness falls abruptly

Published 2024년 2월 22일

Tridge summary

Argentine soy flour exports are experiencing a 23% price decrease due to factors such as Argentina's productive recovery, increased industrialization in Brazil and the US, and reduced demand from China. This could lead to an export cut of around US$ 3.3 billion. The US's increased use of soybean oil for biodiesel production and Brazil's aim to break its soybean crush record are impacting prices. Meanwhile, China plans to reduce the use of soybean meal in animal feed, which could decrease soybean consumption by nearly 9 million tons. The US Federal Reserve's near-zero rates until March 2022 have also influenced investment in commodities.

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

Original content

Soy flour hopes not only to consolidate itself as the main product exported by the Argentine Republic, but also to return the country to its leading position as a world exporter. On average, the last five years of shipments abroad of this product represented 15% of total national exports. However, the FOB export prices of Argentine soy flour and pellets come with a marked decrease and the average of US$ 533/tn from June to October 2023, today they are just above US$ 410/tn, a cut close to 23%, and the lowest level since December 2021. With preliminary forecasts of exporting more than 27 Mt of soybean meal in the upcoming 2023/24 campaign, projections are already feeling the impact of the price cut. At the values in force at the beginning of planting, the projection of soybean meal exports exceeded US$ 14,560 million. But at current export prices, the exported soybean meal could be estimated at just US$ 11.27 billion, an export cut of approx. US$ 3.3 billion.THE DRIVERS OF THIS ...

Source: Diariolaopinion