Argentina: Big Jump in Soybean Oil Shipments
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Argentina, Soybean – Argentinian Soybean production for the 2021/2022 campaign closed with a volume of 43.3 million tons, reported the Buenos Aires Grain Exchange. The average yield was 27.9 quintals per hectare (qq/ha), 4.1% above the average yield of the 2020/21 campaign. Although production grew in the 2021/2022 season compared to the 2020/21 cycle, the final volume obtained was 8.5% lower than the average of the last five threshings. The final number was also below initial market expectations, which projected a harvest of around 44 million tons.
The main reason the oilseed could not reach the initial production forecasts was “the lack of humidity and the high temperatures in mid-January that affected the crop, said the Grain Exchange in its report. Thus, the productive regions of the northern and southern cores reported average yields of 29.5 and 32.4 qq/ha, figures that represented a decrease of 14% and 2.4%, respectively, when comparing the average yields of the last five campaigns.
The NOA was one of the regions hit by the weather, with a significant lack of rain for a large part of the crop cycle, generating “significant losses.” The productive zone dropped 15.2% in its average yield to 21.7 qq/ha. In the NEA, the climate was more benevolent with Soybeans, with timely rains during February and March, which allowed yields to show a growth of 38.5% compared to the previous season, with 28.9 quintals per hectare. Finally, in the south of Buenos Aires and La Pampa, where more than 75% of the planted area corresponded to second-rate Soybeans, the accumulated production was almost 1.3 million tons, with an average yield of 15.6 qq/ha.
The 2021/2022 Soybean campaign closed with a balance of 200,000 tons higher than the 2020/2021 season, thanks to an improvement in the yields obtained since the planted area was 600,000 hectares less than that of the previous period. The Soybean planting area in Argentina for the 2022/23 campaign is expected to be approximately 17.1 million hectares, a growth of 6% over the total planted last season, which was 16.2 million hectares. With a possible yield of 2,800 kg/hectare, Soybean production should be above the previous season. The initial projection is 47.9 million tons, 11% higher than the 2021/22 campaign.
Concerning yields, a similar trend is expected, with more significant improvements in the north and considerable increases in the core area. According to the technical analyst of SAFRAS & Mercado, Bruno Todone, with an intervened corn market and the possibility that the intervention increases, Argentine producers would decide to plant more Soybeans.
Argentina’s Soybean Trade
According to the Undersecretary of Agricultural Markets of the Ministry of Agriculture, Livestock, and Fisheries, out of a production of 43.3 million tons, producers sold 18.53 million tons during the 2021/22 campaign, while at this point last year, sales totaled 22.5 million tons, which represents a delay of 18% for the current period. The latest export projections of the Soybean complex estimated by the Rosario Stock Exchange would close with a record value of US$23,863 million, which, if materialized, would mean an increase of US$387 million compared to what was invoiced in 2021.
The greatest jump will be in Soybean oil shipments, which would reach US$8,069 million, US$968 million more than last year, followed by biodiesel shipments, which would add US$273 million more to US$1,763 million in 2021. Meanwhile, Soybean meal/pellets exports would go from US$12,105 in 2021 to US$12,297 million this year. On the contrary, for bean shipments, the billing would be around US$ 1,734 million, significantly below the US$ 2,780 million of 2021. According to Agflow data, Argentina’s top 4 export markets for Soybeans were China (4.6 million tons), Indonesia (0.08 million tons), Singapore (0.05 million tons), and the Philippines (0.04 million tons) in 2022.
Other sources – Argentina, Soybean: TELAM
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