Brazil’s soybean exports to Argentina near 250,000 mt

13.06.2018

Crushers in Argentina, which is experiencing its worst drought in decades, have imported 245,000 mt of Brazilian soybeans so far this year, more than the last seven years combined, and the total is expected to rise.

According to official data from Brazil, exports to Argentina reached 109,000 mt last month, taking the total to nearly a quarter of a million tonnes so far this year.

It imported 209,000 mt in the past seven years from its neighbour.

Argentina, the world’s third largest producer and exporter of soybeans and the largest exporter of soymeal and soyoil, has suffered a dry summer that has baked its crop and slashed soybean production by almost 40% to about 35 million mt.

In order to keep crushers running and meet contractual commitments to sell soymeal and soyoil, Argentina’s crushers have bought almost 500,000 mt from the US.

But while that is for delivery in the next crop year, starting in September, crushers had been seeking more immediate purchases from Brazil.

However, a trucker strike that crippled the country’s transportation network put a halt to those discussions.

“We were getting offers regularly up until the strike, but nothing much has happened since then,” said one market source in Buenos Aires, adding he expected talks to restart.

The USDA said last month that it expected Argentina's imports of soybeans to reach 4 million mt this crop year, double the previous year’s volume.

Argentina typically imports soybeans from Paraguay to press in its vast crushing industry.


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