April 21, 2009

The US Department of Agriculture reports that Argentina's 2008-09 oilseed production will increase from 2008-09 levels, reaching 18 million planted hectares with a production of 49 million tonnes.

Although soy currently face the highest export tax among the major crops, the USDA indicates that soy production generates among the highest returns to producers given current world and domestic prices for crops. Due to expected decreases in area planted to corn and wheat, USDA expects a shift to soy and a corresponding increase in soy area over the previous year. Production for 2008-09 is forecast to reach 49 million tonnes due to the increased area and a return to more average yields.

Currently, the export tax on soy is 35 percent and remains the key issue of the more than year-old conflict between Argentine producers and the government, and is an issue in the midterm Congressional elections which will be held on June 28, 2009.

For more of the USDA report, please click here.