Soybean derivatives supply under pressure as Argentina, Brazil face headwinds
Refined Soybean Oil
Published Jan 11, 2023
Tridge summary
Weather vagaries that have hit soybean crop planting in Argentina, the world’s biggest exporter of soybean meal and oil, and the No. 2 supplier Brazil gearing up to raise its biodiesel blending mandate could squeeze global soybean derivatives supply in 2023, soy-bean oil and meal traders said. Argentina and Brazil make up more than half of the world’s soybean oil and meal supply.
Original content
Market participants are worried that the US Department of Agriculture’s initial soybean crushing estimate of 39.75 million mt and production projection of 49.50 million mt for Argentina in marketing year 2022-23 (October-September) may be too high because the crushing could drop as the country faces severe La Niña-related weather impacts for the third straight year. Current soybean season planting in Argentina has been progressing at a slower pace than MY 2021-22. Soybean planting was about 60.6% complete as of Dec. 21, 12.6 percentage points lower on the year, according to Rosario Grains Exchange, or BCR, data. BCR projects MY 2022-23 sowing area around 16.7 million hectares, against 16.3 million hectares a year ago. A lack of soil moisture and high temperatures have hampered field activities, the Buenos Aires Grain Exchange, or BAGE, said in a recent report. Farmers are unclear about the pace of Argentina’s 2023 soybean sales following the government’s two successful rounds in ...
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