June 6, 2007

Argentina seen to increase soybean imports

Argentina, one of the world's leading soybean exporters, is projected to buy more soybeans to supply its rapidly-expanding crushing industry, according to Hamburg-based oilseeds analysts Oil World.

Oil World estimates Argentina will import 2.20 million tonnes of soybeans in March 2007/February 2008, a hefty rise from 980,000 tonnes in 2006/2007.

The figures were a contrast to a forecasted sharp increase in Argentina's 2007/08 soybean crop to 46.20 million tonnes from 40.80 million tonnes in 2006/07. Most imports were likely to come from Paraguay, according to Oil World.

The analyst said the increase was also due to a substantial rise in Argentina's crushing capacity, especially in the Rosario region, and imports will be needed to better increase capacity.

In March/February 2007/08 Argentine soybean crushings are likely to reach an astounding 38.0 million tonnes, up by 5.3 million tonnes last season, it said.

Argentina's 2007/08 soybean exports were expected to rise to 8.0 million tonnes from 7.01 million tonnes in 2006/08, it said.

Soybean exports had started the season strongly but the pace was expected to slow down later in the year.