April 3, 2020

 

Argentine soy crops industry affected by bad weather and COVID-19

 

The Buenos Aires Grains Exchange has cut the country's soy harvest estimates, while exports have been delayed due to mandatory health inspections on incoming cargo ships at Parana River port, reported Reuters.

 

The shipment disruptions in Argentina could affect world trade flows and importers, especially as European and Southeast Asian pork, poultry and beef producers shift towards the United States and Brazil to make up for the supply deficit.

 

Argentina is third biggest corn and soybean exporter in the world, and the biggest soymeal livestock feed supplier.

 

The Buenos Aires Grains Exchange said Argentina's soy crop harvest is estimated at 49.5 million tonnes, lower than initial 52 million tonnes estimation because of bad weather (extreme dryness in February and early March on the Pampas farm belt, unusually rainy conditions and soil that is too wet) and lower yields.

 

There is also a logistics bottleneck at Parana River export hubs, with about 28 shops waiting to be inspected due to COVID-19 measures, said to local maritime agency NABSA. These inspections take an entire day.

 

Argentine truckers' unions and municipal governments have opposed to using roads to for commodities' transport as it may more likely spread COVID-19 while the country is under lockdown.

 

The Argentine government is trying to avoid defaulting on more than US$100 billion debt by leaning on its agriculture exports, its biggest income source.

 

The Buenos Aires Grains Exchange said in its report that soybean harvests have been affected by large rains across wide areas in the agricultural belt, with harvests advancing 3.5 percentage points over the last seven days to 8.1% of planted area.

 

The exchange has kept its estimates of 50-million-tonne corn harvest. The country has harvested about 22.2% of its 2019 / 2020 corn crop currently.

 

Argentina has 1,133 cases of COVID-19 confirmed, with 34 deaths.

 

-      Reuters