Soybean sales in Argentina fell by 45 percent in June as compared to May

03-Jul-2024 11:51 AM

Buenos Aires. In the Latin American country Argentina, farmers showed very little interest in commercial sales of soybean last month because the peso (Argentine currency) weakened in the informal exchange market.

This forced farmers to hold their oilseed stock. According to Argentina's Crushing and Export Chamber, soybean sales fell by about 45 percent in June as compared to May.

It is worth mentioning that Argentina is the third largest producer and exporter of soybean in the world, while it is facing tough competition from Brazil to maintain its status as the largest exporter of soybean oil and soymeal.

In June, due to the crushing processing units not getting sufficient raw material (soybean), the production of soybean oil and soymeal decreased, due to which its export is likely to be partially affected. It is known that the maximum import of soybean oil in India is from Argentina. Soy oil exports from Argentina may decline in July.

According to the Chamber, only about 38 lakh tonnes of soybean were sold by Argentine farmers in June 2024, which was much less than in May.

One reason for higher sales in May was that farmers needed paddy for wheat cultivation and this could be procured by selling soybean.

Argentina is currently going through a severe economic recession. The foreign exchange reserves there have decreased significantly and the government wants to increase the foreign exchange reserves through exports of soy producers. But there is some hindrance in this.