Brazil has enough potential to supply up to half of the soybeans that Argentina will import to keep its industrial park running in the face of the historic drought that ravaged the 2022/23 crop in the country. Argentina, which is expected to reap round 25 million tonnes this season, may have to import up to 10 million tonnes of soy, more than double than in previous years, mainly from Paraguay and Brazil, they said. Brazil is harvesting a record crop and could increase sales to Argentina by at least ten times, said Sol Arcidiacono, based head of Latam Grains at hEDGEpoint Global Markets. Brazil will export at least 3 million tonnes to Argentina, but if international soymeal prices pay off, that volume can reach 5 million tonnes, Arcidiacono said, adding that Argentine crushers’ margins are currently negative.
Sources: Terra/Datamar News