A key product in Argentine export, soy flour, recorded a Fall in its export FOB value and descended to U $ 281 per ton. This represents its level lower in more than 15 yearsas detailed a report.
In detail, in the country they were sown 18.4 million hectares of soy during the 2024/2025 campaign, What marks a 6.4% increase compared to the previous season. The price drop contrasts with the increase in demand of this product.
The main Argentine export registered its lowest price in 15 years
The report I carried out the Rosario Stock Exchange (BCR) registered bad news for the country’s main export product. The current price of US $ 281 marks the worst record in more than 15 years.
The price drop occurs in the middle of a year marked by downward contributions, but with positive signs in the demand of the world. In detail, a report from the Buenos Aires Cereal Stock Exchange recorded that, for 2024/2025, 6.4% more soy were sowed than the previous season and 10% more compared to the average of the last five years.
One of the reasons behind the sharp fall in global price is associated with advance of biofuel policieswhich generated a greater demand for vegetable oils -especially soybean oil -, which promoted its more than 30% rise price so far this year.
That rebound in values too It resulted in greater pore processing, which in turn generated an abundant supply of flour. However, the global consumption of this by -product does not grow at the same pace, which generates an imbalance in the market.
The excess supply exerts bear pressure on the prices of the flour, both in the internal market of the United States and in international trade. Currently, soy flour represents the 13.4% of the total exported by the country, while the Sojero complex as a whole explains 27.6%.
For this year, flour exports are projected by US $ 9,044 milliona number that exceeds last year, although it is still maintained by below the highest historical levels.
Soy flour: ship of 30,000 tons part to China, but there is caution for market sustainability
A cargo of 30,000 tons of soy flour will leave this month from the city of San Lorenzo, Located on the shores of the Paraná River, destined for China. This is the first export of this type between the two countries, an operation that generated impact on the global grain market by involving the Argentine agroindustrial complex —Wor worldwide in the supply of soy flour – and the gigantic Chinese market.
Although shipping represents a milestone, analysts in the sector maintain a mesurated vision About the future of the business with China, which has a highly developed grinding industry and operates in the context of a prolonged commercial war with the United States.
For analyst Lorena D’Angelo, “If China is buying from Argentina it is a good signal”, And stressed that, in the face of the growth of the international supply of flour from the United States and Brazil, the operation represents an important advance for the local industry. In 2023, Argentina exported 27.2 million tons of soybean flour, with income from US $ 10,550 million.
Despite the symbolic value of the operation, the possibility of consolidating China as a frequent destination for Argentine soybean flour is observed cautiously. Part of skepticism is that This purchase could be motivated more by political factors – like commercial tensions between Beijing and Washington – than for a structural demand.
“I don’t see that it is an important market this year,” said D’Angelo, who recalled that, in recent years, China barely imported 50,000 tons of soy flour.
China containers export import.jpg
Gentileness: Scarbrough International
Along the same lines, Julio Calzada, director of Economic Studies of the Rosario Stock Exchange (BCR), said: “It is a good sign, But it is more political than market. ” In addition, he stressed that the annual soy grinding capacity in China reaches 153.5 million tons, a 130% higher volume than Argentina. “In the sector there are doubts regarding the future possibilities of continuing to place Argentine soybean flour in China, because China has numerous oil plants,” he said.
China approved the entry of Argentine soybean flour only in 2019. Despite doubts, the Oil Industry Chamber and the Cereal Exporters Center (Ciara-Cec) celebrated the progress. On Monday, he announced the next arrival of the Nordajo ship to the terminal port 6 of San Lorenzo, operated by Bunge and Oil General Deheza (AGD).
“It is a very important shipping (…) because it implies a real and effective commercial opening,” Gustavo Idígoras, president of Ciara-Cec, said. “This should allow permanent future flow,” he concluded.
Source: Ambito
