BCR warns that Argentine soybeans would contribute US$ 7.3 million less than in 2022

Published Apr 2, 2023

Tridge summary

Argentina has seen a decline in soybean cultivation, with corn now becoming the leading grain in production since the 2019/20 campaign due to a severe drought and a decrease in planting areas. This trend is expected to continue, leading to the country's worst productive campaign in 23 years with a projected 40% drop in soybean production compared to the previous campaign. This will have a significant impact on exports, with soybean meal, the main product exported, expected to see a 30% decrease in 2023. This decline could potentially strip Argentina of its position as the world's leading exporter of soybean meal, a position it has held for over 25 years. The decrease in production and export volumes is attributed to the drought, low production volumes, and shifting export margins towards industrialized products.

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

Original content

Since the 1990s, soybeans have been the main grain in national production without question. However, in recent years soybean has been dethroned from first place: in the recent past a progressive drop in the area devoted to cultivation has been observed, being replaced mainly by corn, with the latter occupying the first position in production since 2019/20, according to the Rosario Stock Exchange. This trend will be repeated in the current campaign, although with production levels lower than the average of recent campaigns due to the severe drought (35 Mt of corn vs. 25 Mt of soybeans projected on 22/23 according to the GEA-BCR estimate for the month of March 2023, updated based on their weekly core zone reports), he warns. In the current campaign, it is estimated that 16 million hectares of soybeans were planted, barely 100,000 hectares below the previous campaign. The oilseed remains the main crop in planted area in the country, although it has shown an uninterrupted drop in the ...

Source: On24