Brazil displaced Argentina As the world’s largest exporter of soybean meal by First time in history. In addition, the data that arises from a private report, the effect that the drought will generate is not included. For its part, Brazil surpassed Argentina in soybean milling volume for the first time in 26 years.
The data corresponds to “Agroindustrial Monitor” which periodically publishes Chamber of the Oil Industry of the Argentine Republic (CIARA)who on this occasion disseminated the work under the title “The Lost Decade”.
The report maintains that “soybean processing in Argentina closed 2022 with a drop of 10%“Despite this panorama, CIARA is one of the main entities that supports the Government in the implementation of differential exchange rate programs launched by the Ministry of Economy to ensure the entry of dollars.
“Without considering the complex panorama that is expected for the bean (due to its poor quality due to the drought) in the imminent 2022/23 campaign the crush data (grinding) from last year Argentina’s downtrend deepens in the Mercosur mill,” said the monitor.
The report noted that soybean milling in the first quarter of 2023 is he second worst record of the decade with 3,439 million tonsonly above the same period in 2013 when they had been 2,921 tons.
In turn, he maintained that in this decade Brazil’s milling capacity “almost equals” Argentina’s being at 202,337 tons per year and 204,671 tons per year, respectively.
In this context, he added that “in 2022 the Argentine participation in the industrialization of the economic bloc was the second lowest since 1988“.
Drought impact
“The drop in soybean production due to the drought will have cdirect consequences on the volume of processing and there will be a sharp drop in soybean oil and meal production“, the report noted.
He added that “the impact will fall on exports, causing one of the largest falls in the share of our world trade back to levels we had in 1998“.
In the case of sunflower the document observes a more encouraging picturegiven that it is estimated that oil exports could exceed one million tons, which is 165% compared to the beginning of the decade.
Regarding the cornthe volume entered into the ports in March was one million tons, well below the 2.5 million in the same month last year and a quarter of the 4 million that entered in March 2020.
Between the negative effects of drought already beginning to be noticed impact on truck movement. The number of vehicles entering the ports with soybeans was 11,420, the lowest record in the last four years.
Source: Ambito
