- Argentina’s soybean market is currently in a slump due to very low prices and limited sales by farmers.
- The rains in April have also led to a slower harvest.
- The pace of soybean sales in Argentina is the slowest in 10 years!
- The market is expected to recover and soybean prices are expected to rise gradually until July.
Unfavorable weather as the cause of problems with the soybean harvest in Argentina
Argentina is one of the world’s largest exporters of soybean oil and soybean meal. Due to the unfavorable weather and low prices on the soybean market, sales of this raw material are currently being severely hampered. The soybean harvest normally begins in April, which was heavy with rains this year. By mid-May, only 61% of the soybean acreage had been harvested – a drop in the harvest rate even compared to 2023, when Argentina itself suffered from droughts. The soybean market is also being affected by the flooding in Brazil, which is flooding crops there, the drought in northern Argentina and lower demand for soybean products in the US.
Situation on the soybean market – sales paralysis
Farmers often sell the crop before it is fully ready, but this year many are waiting for the market to recover and prices to rise. Such a slow pace of sales has not been seen since the 2014/2015 season. Only 12% of the soybean crop is currently registered for sale – normally twice as much at this time of year. By the beginning of May, only 31% of the expected soybean harvest of 49.7 million tons had been sold. At the beginning of the year, soybean prices were 270 USD per ton, making sales unprofitable for farmers. During last year’s sowing, the price was 350 USD. This motivates producers not to sell their soybean stocks and wait for the market to recover. Soybean prices are expected to rise to 315 USD per ton in July.
