Argentina may import a record 10 million tons of soybeans this year. At the same time, about 40-50% (4-5 million tons) of this volume is expected to be imported to the region from Brazil. This is reported by AgriCensus with reference to the forecast of industry experts.
According to estimates of the U.S. Department of Agriculture (USDA), over the past more than 20 years Argentina has only once purchased more than 5 million tons of soybeans: in the 2018/19 crop year, the country received 6.4 million tons of beans – this is also 1.5 million tons above the average for the past five years (4.9 million tons).
Imports increased due to the drought
Specialists note that such an increase in imports will be due to a sharp decline in the gross harvest of the oilseed in the region due to drought. According to the Buenos Aires Grain Exchange, production in the current season has slipped more than 1.5 times to 21 million tons. Yields plunged 45% at once, to the lowest result in 10 years at 15.4 c/ha.
“Drought will lead to a total loss of about $20 billion, which is almost three percent of Argentina’s gross domestic product,” – follows from the estimates of the country’s authorities.
Recall that from January to May Argentina has already become the second largest importer of soybeans from Brazil, purchasing 1.92 million tons of the oilseed.