South America plays a fundamental role in this scheme as a producer of cereals and oilseeds. However, the expectations regarding the campaigns of the countries that make up the south of the American continent are far from the initial projections, due to the rainfall deficit that occurred between December 2021 and January 2022. The estimates of the Soybean harvests in Argentina, Brazil and Paraguay, severely affected by the drought of this “Niña” season, were below the tonnages that were expected just two months ago.
In our country, according to the Rosario Stock Exchange, the 2021/22 campaign would reach 40Mt, meaning a 10% reduction compared to the last harvest. But the severity of the drought and the forest fires generate uncertainty about the productive results.
The situation in Brazil and Paraguay
On the Brazilian side, the panorama reflects a clear decrease in production, with an epicenter in the southern states. The reduction would be of the order of 10 Mt or 7.8% in relation to the previous campaign where the world was supplied with about 135.9 Mt.
In Paraguay, soybean production was also affected by the drought. This country is among the 10 main exporters of the oilseed and is a key supplier for the Argentine oil industry. In this case, it also presented a cut in the 2021/22 campaign according to the USDA of 6.3Mt behind the 9.9Mt of the previous harvest.
The Paraguayan Chamber of Exporters and Traders of Cereals and Oilseeds (CAPECO) reported that its production estimates are around 4 Mt, resulting in the lowest record since the 2008/09 harvest when 3.6 Mt were raised. At the same time, the estimate of yields for our neighboring country it is 1,250 kg/ha, resulting in the lowest productivity since the beginning of its historical series dating from the 1996/97 campaign.
How can crop trimming affect?
For the Rosario Stock Exchange, “these figures result in a difficult outlook for the oilseed market since Brazil and Argentina are two key players in international trade, representing the main exporter of beans and the largest exporter of by-products of the soy”.
In this sense, with a growing international demand – whose main candidate is the US – it will have to turn to other destinations to supply itself. According to data from the BCR, sales to the US in this campaign represent the highest historical record in absolute terms. In the last week, foreign sales of more than one million tons have been announced for the 2022/23 harvest, while nearly half a million tons would have been purchased for the current 2021/22 marketing year.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
