In this way, the US dependency In its monthly report on world grain supply and demand, it reduced Argentine production by 1.5 million tons to 45 million, while for Brazil the new projection is located at 134 million tons, 5 million less than last month.
For Paraguay, the cut was 2.2 million tons to 6.3 million.
Although the reductions in the oilseed harvest projections were considerable, It takes on greater magnitude when compared to the production expected in December by the USDA, when it forecast an Argentine threshing of 49.5 million tons and a Brazilian one of 144 million.
“This substantial drop in production would lead to lower exports and less crushing in the three countries,” The Rosario Stock Exchange (BCR) stood out in its analysis.
Argentine bean exports were projected at 3.8 million tons, 1.1 million less than in January, while the Brazilian ones were calculated at 90.5 million tons, which meant a drop in expectations of 3.5 million tons.
Regarding the industrialization of soybeans, the estimates for Argentina stand at 40 million tons (-1.2 million) and for Brazil at 47.2 million tons (-300,000).
Thus, the lower supply and higher prices “lead to a lower global demand for beans, particularly from China.”
In this way, the imports and the crushing of the Asian giant fall by 3 million tons to 97 and 94 million tons respectively, so that the final global stocks are reduced to 92.8 million tons.
Source: Ambito
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