May 12, 2009
Argentina's farmers have sold over half of soy crop
Farmers have already sold about half of Argentina's 2008-2009 soy crop, with demand strong on tight supplies due to extensive drought damage.
About 16.5 million tonnes have already been sold to traders, crushers and exporters, representing between 49 percent and 53 percent of the crop, according to the Rosario Grain Exchange.
That compares to 45 percent of the crop sold at this point last year.
The bulk of the beans were likely bought by traders, although it is hard to say with certainty due to the government's ceasing to publish a key report on buyers, the exchange said.
With three-quarters of the crop already harvested, production is expected to come in at between 31 million tonnes and 34.5 million tonnes, down sharply from the 46.2 million tonnes grown last season.
The Buenos Aires Cereal's Exchange, the most reliable source since the government ceased to release its monthly crop forecast, is expecting 34 million tonnes.
Crushers will likely end up buying 30 million tonnes of this season's soy crop and turn it into meal and oil for export, leaving very few beans left over for export, the Rosario exchange said.
The sharp drop in soy output due to the drought and lower prices is expected to have a significant effect on the country's finances this year.
Exports of 2009-10 soy, soymeal and soyoil, the leading source of dollar inflows, are expected to total just US$13.3 billion, a 40 percent drop on the year, according to the Exchange.
