Soybean Sales in Argentina Depend on Many Factors

11-Apr-2025 11:36 AM

Buenos Aires: In Argentina, preparations for harvesting the new soybean crop are underway, but farmers are holding back sales despite having stocks from the previous season.

Market arrivals averaged 2.02 lakh tonnes in January-February 2025, dropped to 1.83 lakh tonnes in mid-March, and further fell to just 1.20 lakh tonnes in the first 8 days of April, causing concern in the crushing and processing industry.

As the world’s third-largest soybean producer after Brazil and the U.S., and the top exporter of soy oil and soy meal, Argentina is expected to produce 480–500 lakh tonnes of soybean in 2024–25.

The government is urging farmers to accelerate sales to boost exports and increase revenue, which is critical for managing the country’s debt burden and securing more loans from the IMF.

However, high export duties, hopes of better future prices, and uncertainty around the government’s "Soy Dollar Scheme" have made farmers hesitant.

Additionally, the evolving U.S. tariff policy and shifting global economic conditions are impacting sentiment.

Analysts suggest that to maintain Argentina’s export momentum, strong incentives are needed to motivate farmers to sell their soybean stocks.