In the current harvest season, Brazil is poised to reclaim its title as the global leader in soybean meal exports, edging out Argentina, who held the top spot for 25 years.
A report from the Rosario Trade Exchange, a prominent Argentine trade entity, reveals that Brazil’s soybean meal exports will exceed Argentina’s volumes this year.
This shift in leadership can be attributed to two primary factors: Brazil’s record-breaking soybean harvest and a severe drought in Argentina, which cut its harvest estimates in half to 20 million tons.
This shortage has resulted in a 34% decrease in Argentina’s soybean meal export projections.
Furthermore, their soybean oil shipments are predicted to decline by 12%.
To put this in perspective, Argentina exported 400% more oil two years ago than Brazil. This gap is now expected to shrink to 57% in the ongoing season.
Based on the report’s predictions, Brazil is set to export 13 million tons of soybean meal in 2023.
This is backed by the country’s record grain harvest of 163 million tons.
Brazil’s main soybean cultivation region is the Central-West, home to the nation’s top-producing state, Mato Grosso.
This state alone is projected to produce about 45 million tons in 2023, which is more than double the anticipated production in Argentina.