Estimates of soy oil and soy flour trade for South America

Published Apr 27, 2022

Tridge summary

Argentina is the world's largest supplier of vegetable oil from soy, contributing approximately 47.6% to the global market, followed by Brazil with 13.7%. The processing industry in Paraguay is uncertain regarding its ability to supply raw materials, which could impact the Argentine crushing industry and production capacity for oil and soy flour. The international vegetable oil market is experiencing a crunch due to restrictions on palm oil exports by Indonesia, drought in Canada, and the war in the Black Sea region. Argentina leads the world market for soy flour, with estimates for exports of 28 Mt for the 2021/22 cycle, while Brazil is in second place with 16.5 Mt. However, the South American group's participation in the international soy flour market is expected to decrease from 71% to 68.9% in the 2021/22 campaign, as the US. is projected to increase its market share from 18.2% to 19.3%.

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

Original content

Argentina will supply the market with around 47.6% of the world's volume of vegetable oil from soy. On the other hand, the second largest supplier is Brazil, which will supply around 13.7% of the volumes traded with 1.7 Mt. The situation of the processing industry in Paraguay remains a high degree of uncertainty regarding its capacity to supply raw materials, as there are harvest estimates between 2.97 Mt and 4.05 Mt. This scenario could greatly complicate the Paraguayan industry. In 2021, 2.8 Mt of soybeans were processed, which is a low record since the average of the last 3 campaigns was 3.45 Mt. At the same time, this country is key to supplying soy to the Argentine crushing industry, complementing the local production of the grain. Therefore, the cut in the neighboring country's exportable balance will have a direct impact on Argentina's production capacity for oil and soy flour. It should be noted that the international vegetable oil market is currently in a situation that ...

Source: 3tres3