May 23, 2016

Argentina soybean exports to fall up to 25% in 2016

The amount of soybean exports from Argentina could fall by up to 25% in 2016 compared to last year, according to analyst.

The decline is attributed to severe rains which had flooded fields and degraded oilseed quality. The areas affected include those in Cordoba, Santa Fe and Entre Rios, the country's three top farming provinces following Buenos Aires.

The development compelled the USDA to cut the forecast for soybean output to 56.5 million tonnes this year.

Still, the agency kept to its expectation of 11.4 million tonnes for export.

Sebastian Gavalda, president of consultancy Globaltecnos, doubts Argentina's capability to meet its bean export projections. He sees Argentine exports of just 8.5 million tonnes of soy for the 2015/2016 season.

Six million tonnes of soybean output had been lost so far due to damages in the affected region. Inferior bean would have to be delivered to mills and mixed with better soybeans. This action could become detrimental to soymeal quality by reducing the protein content.