Forecast soybean production for Argentina has once again increased

2020-03-02 12:11:09
Machine translation
Forecast soybean production for Argentina has once again increased

the experts of the Grain exchange of Buenos Aires has increased compared to the previous estimate, the forecast of soybean production in Argentina in 2019/20 MG 3% to 54.5 MMT due to the good condition of soybean crops.

 

In Argentina, which is the third largest producer and exporter of soybeans, 96% of crops from 17.4 million hectares are in good condition.

 

the Increase in forecast production in Argentina will increase pressure on prices for soybeans, which are already suffering from the global economic crisis and outbreaks coronavirus and Achs in China, which is the largest importer of soybeans in the world.

 

According to S&P Global Platts, as of February 21, SOYBEX on FOB Santos for the April shipments were 347,24 $/MT, losing over a month of 1.5%, whereas the April SOYBEX on FOB New Orleans as of 26 February, was $ 349,8 $/MT, losing over a month of 1%.

 

the forecast USDA, in 2019/20 MG Argentina in comparison with the previous season, will reduce soybean exports by 10% to 8.2 million tons, but will increase the export of soybean meal by 10% to 30,85 million tons and soybean oil – 14% to 6 million tons.

 

Rumors of an increase in Argentina (the world's largest exporter of soybean meal and oil) export duties on soy and its by-products can lead to a decrease in exports and accumulation of stocks from farmers and traders, creating a market, "bearish" sentiment.

 

the Argentine Government, fulfilling a campaign promise President Alberto Fernandes, in December, just starting work, increased export tariffs for the soybean complex 6% to 30%, and now plans to increase them by a further 3% to 33%.

 

to improve the state of the economy and provide much needed notholaena currency to edgeUkraine, the new government increased in December, taxes on agricultural exports, car sales and the purchase of foreign currency.

 

the Agricultural sector of Argentina provides over 50% of the export earnings of the country, therefore, is the main mechenny for tough fiscal measures. The head of Department of Analytics of grains and oilseeds S&P Platts Global Peter Meier noted that "the export tariffs in Argentina have always been a big problem, but they are very necessary for the economy".

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