Argentine soybean crushers in crisis mode

Published Mar 21, 2023

Tridge summary

Argentina's soybean crushing industry is operating at a record 70% idle due to a severe crisis caused by the worst soybean crop in nearly 25 years. Adverse weather conditions such as drought, record temperatures, and frost have resulted in a potential production range of 27-28 million tons for the 2022/23 season, a significant drop from the previous year's 43.9 million tons. Farmers are withholding their soybean stocks, both from the current harvest and the 2021/22 season, due to government incentives and inflation. The industry is considering importing up to 8 million tons of soybeans from Brazil and Paraguay to mitigate the shortage. Additionally, upcoming labor contract expirations could lead to significant salary increases, further straining the already stressed industry.

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

Original content

Soybean crushers in Argentina are in “crisis mode” due to low supplies of soybeans amidst the worst soybean crop in nearly a quarter of a century and farmers holding tight to their remaining soybean stocks. The combination of drought and slow farmer selling has pushed the crushing industry to idle nearly 70% of their capacity, which is the highest on record outside of labor protests. The soybean harvest has not started and when it does, the total 2022/23 soybean production could be in the range of 27-28 million tons or lower. In 2021/22, Argentina produced 43.9 million tons of soybeans. Everything that could go wrong has gone wrong in Argentina this growing season from the worst drought in 60 years, to numerous waves of record high temperatures to record low temperatures and even mid-summer localized frosts. The adverse conditions have convinced farmers to hold tight to their existing soybean stocks and to be very reluctant sellers of their anticipated 2022/23 production. In ...

Source: UkrAgroConsult