The Government of Argentina Monday went back on its steps and reopened exports of soybeans and their by-products after a decision on March 13 to close the registry for sales abroad imposed by Undersecretary of Agricultural Markets Javier Preciado Patiño.
The government of Argentine Sunday decided to shut down all registrations for new soybean oil and soybean meal exports until further notice, it was announced. Authorities are also said to be planning a 2% rise to export taxes of industrial by-products, to level it up with the 33% charged to soybeans.
China will begin the sale of state-owned reserves to increase supply in the world’s largest oilseed market, the National Food and Strategic Reserves Administration announced, although no auction volumes or dates were advanced.
The threat of a full-scale war has increased fears of shortages in the near future, driving prices up. The ton of soybeans rose 2.4% and closed at US$ 615.45, while corn grew 1.3% to close at US$ 269.19 and wheat climbed 3.6% and to reach US$ 321.87, it was reported.
The Union of Production Guilds Paraguay Wednesday said it foresaw 2022 will be a tough year for the agricultural sector due to the current drought which will mean, among other setbacks, the worst soybean harvest in the last 25 years, or US $ 2 billion less to the country's economy.
Paraguay's Agriculture Ministry has announced between 6 and 7 million tons of soybeans were to be harvested this season against the original projections of 10 million due to the unprecedented weather conditions.
The hydric deficit and above-average temperatures in southern Brazil and southern Mato Grosso do Sul, prevailing since November have significantly damaged the 2021/22 soybean crop. Brazil’s estimated harvest has been lowered by 11.3 million tons to 133.4 million tons, according to a new survey released this week by AgRural.
Brazilian farmers are planning to expand their soy area for the 15th consecutive year, according to a survey by consulting firm Datagro. The world’s largest soybean producer and exporter will increase the area sown by 4%, to 40.57 million hectares in the 2021/2022 season.
The price of soybeans sprang back to above US $ 500 in the Chicago market Wednesday after a US $ 33.2 rise fueled by a new report on stocks and planting from the Department of Agriculture of the United States (USDA).
Argentine economists are eyeing the recent increase in the international price of soybeans as some sort of light at the end of the tunnel following a severe recession, high indebtedness amid the coronavirus pandemic.