The soybean production It will reach about 48 million tons in the current campaign, in contrast to the barely 20 million in the 2022/23 cycle, which marked the worst record of the century. This was stated in a report from the Rosario Stock Exchange (BCR) which also noted that the area dedicated to soybeans will experience an increase, breaking a nine-year streak of continuous decline: initial estimates indicate planting intentions of 17 million hectares, which represents a year-on-year increase of 6.2%.
The business entity explained that the area dedicated to this oilseed has experienced a marked decline in recent yearsgoing from 20.25 million hectares in the 2014/15 campaign to 15.97 million in the last cycle.
“This downward trend, which represented a loss of 21% of planted area in the last decade, is due to several factors. In addition to the problems of resistant weeds and costly controls, soybeans have lagged behind in genetic terms, which limits your productive potential compared to corn“, he pointed out.
And he added that soybeans “become an alternative when circumstances do not allow sowing all the desired corn. Last year’s drought, although it was a difficulty, has also left a great number of hectares available that will be added to soybean planting, despite the historical lack of financial resources”.
Consequently, the Rosario Stock Exchange expects that in the 2023/24 cycle the area devoted to soybeans will experience an increase.
What will happen to corn and wheat
The BCR report also made reference to the corn: in this case, he explained that this crop maintained a more stable position in terms of planting area, with a constant intention of 8.5 million hectares for the 2023/24 cycle.
Factors favoring corn include a favorable climate for high production after several cycles marked by adverse climatic phenomena and, in addition, the drop in wheat planting in some areas prompts producers to opt for corn in their rotations, according to the report.
However, the entity clarified that “the high production costsespecially for those who rent land, represent a significant challenge to the growth of the area devoted to corn.”
If conditions remain stable, production is estimated at around 56 million tons for the cycle 2023/24.
On the other hand, the wheat faces difficulties related to lack of water in recent weeks, but a planting area of 5.4 million hectares and a projected production of 15.6 million tons are estimated.
Source: Ambito
