Argentina regains first place in the international soybean meal market

Published Aug 26, 2024

Tridge summary

Argentina is making a comeback in the global soybean meal market, with soybean exports surging by 46% in the first half of this year, following the recovery from the 2023 drought. However, the country's growth is not keeping pace with its competitors, such as Brazil and the United States, due to underutilized capacity. Despite Argentina's status as the leading global exporter of soybean meal since 1997/98, it faces challenges in maintaining its position. Factors contributing to these challenges include lower profit margins and the impact of a historic flood in Brazil, as well as the United States and Brazil's stronger presence in the market, driven by increased domestic production and international demand, particularly from Southeast Asia.

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

Original content

Argentina regains ground in the global soybean meal market, overcoming the effects of the drought 2023. The consolidation of the sector is essential to maintain global competitiveness. Argentina increased its soybean exports by 46% in the first half of this year, compared to the same period in 2023, thus recovering its production level according to a work published by the Rosario Stock Exchange (BCR). However, despite the year-on-year growth, when evaluating the performance over the medium term, the local productive dynamics are surpassed by its closest competitors. This moderate growth is influenced by an idle capacity that remained at around 42% during the last three normal production campaigns. Despite having infrastructure to increase soybean grinding, there is no significant increase in soybean production in recent years. Soybean meal exports were led by Argentina, Brazil and the United States. Since the 1997/98 campaign, Argentina remained the main global exporter of this ...

Source: Defrentealcampo