Soybeans bombarded from all sides in Argentina

The price of soybeans may well return to the higher echelons in the coming months. The Argentine soybean production will turn out considerably lower and there is a chance that there will be even more loss.

During soybean sowing, the sector was under pressure due to the changes in the export tariff. As a result, many farmers switched to maize and wheat. In addition, the southern cultivation areas suffered from prolonged drought and high temperatures, which also caused fires and soybean acreage was lost.

Elsewhere in the country, soybean growers have to deal with heavy rainfall, flooding, hailstorms and severe storms. As a result, planting has been delayed. Some will have to be replanted. It is certain that a large surface area will have to deal with losses. How much that depends on what the weather does for the next two weeks.

It looks like the weather in Argentina will remain very erratic. Estimates speak of a harvest of 52.5 million tons. Last year it was 56.8 million tons. If it remains dry, part of the acreage can be replanted, but if the wet areas receive even more rain, it is no longer possible to sow in time. As a result, it is possible that another 300.000 hectares will be lost due to saturation. Together with the loss due to drought, the planted area amounts to a loss of 3 percent.

The futures market reacted with an upward correction, but closed slightly lower on Wednesday.

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