According to the Paraguayan government, its 2021/22 soybean harvest could fall by up to 50%, to around 5 million tons, reaching the lowest volume in the last decade. Paraguay is the fourth world exporter of soybeans.
However, Gustavo Idígoras, head of CIARA-CEC, pointed out that he does not foresee a new trend of Argentine soybean sales to Paraguay, with which Argentina borders on its northern border.
Argentina is also suffering the effects of a drought that has already caused significant losses in its soybeans and corn, and which could worsen. The Rosario Stock Exchange (BCR) in January reduced its forecasts for corn and soybean crops by 8 million and 5 million tons, respectively.
Currently the production forecasts of the BCR are 40.5 million tons for soybeans and 48 million tons for corn. In the previous campaign, the production of both grains was 45 million and 52 million tons, respectively.
“The outlook for this campaign is quite negative due to weather conditions, which will generate a shortage that will impact activity, which at the end of last year had an idle capacity of 45% and could be expanded. It will depend on the final volume of the campaign,” Idígoras said.
The BCR warned that the impact of the current drought could resemble that of the 2017/18 campaign, when Argentina’s soybean production was 35 million tons and idle capacity in the grinding sector reached 60%, according to CIARA data.
Source: Ambito
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