With the international price in Chicago at rock bottom, a business window seems to have opened for oil and flour factories by bringing grain from the United States.
Argentina, the world’s largest exporter of processed soybean meal and oildecided to import whole grains from the United States for the first time since 2019, as falling prices make them the cheapest in the world.
“US soybeans are so cheap that even rival Argentina is buying them,” Bloomberg reported. Last time, in 2019, international prices were suffering sharp declines as they are now.
It should be remembered that, although the soybean harvest in our country this year was good, The oil industry continues with a lot of idle capacity And, in fact, so far in 2024, beans from Paraguay have been key to maintaining activity levels.
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Now, with the international price in Chicago on the floor, For oil and flour factories, a business window seems to have opened by bringing grain from the United States.even though there is obviously a huge freight cost in that process.
US soybeans travel to Argentina
According to Bloomberg, based on information from the United States Department of Agriculture (USDA), Argentina purchased 88,400 metric tons of soybeans for shipment during the current season.
As mentioned, The key is the collapse in prices, in a context in which the harvest of the oilseed is beginning in the United Statesand record volume is expected.
The estimate is that this operation, departing from the ports of New Orleans, It would be made for US$395 per ton, around US$16 cheaper than Argentine soybeans.according to data from Commodity3.
“Crushers in Argentina, including Glencore’s Viterra Inc., Cargill Inc. and Louis Dreyfus Co., often operate with high idle capacity.After industrial expansions in the past two decades outpaced growth in agricultural output, as producers grapple with high taxes and exchange rate distortions,” Bloomberg reported.
Source: Ambito
