Argentine producers sell 17.3 million tons of soybeans; pace is slower than last year

RIO DE JANEIRO, BRAZIL – Argentine farmers have so far sold 17.3 million tons of soybeans from the 2020/21 season, after recording transactions of 886,100 tons in the week through May 5, the country’s Agriculture Ministry said in a report on Wednesday.

The Ministry’s information showed that sales are short of last year’s pace. Producers said they are “holding back” production as a way to protect themselves from the devaluation of the peso, the local currency. At this time in 2020, 21.4 million tons of Argentine soybeans had been sold.

Argentine farmers are currently harvesting the 2020/21 soy crop.

High international prices have mitigated the impact that low sales could have had on Argentina’s central bank reserves. Agricultural shipments are the main source of dollars raised from exports in Argentina at a time when local reserves have been strained by a recession aggravated by the Covid-19 pandemic.

The Rosario Grain Exchange expects a 45 million ton soybean crop this season, compared to 50.7 million tons harvested in 2019/20.

The Ministry said 26.3 million tons of corn had been sold by Argentine producers by May 5, 3.4 million tons more than in the same period last year. The exchange expects a 50 million ton corn harvest this year.

The country is the world’s third largest corn exporter, as well as the largest global supplier of soybean meal, used as feed for swine and poultry in Europe and Southeast Asia.

Argentine corn starts to be planted in September, with harvesting until July. The soybean season runs from October to May.