An increase in the forecast of the area destined to wheat would allow to rise the national production, reaching a record of 20.5 Mt during crop season 2021/22. On the external sector, productive and stock forecasts for the next crop have been cut.
Until May 2021, due to agribusiness exports, the exchange current account had a surplus of US$ 5,806 M, a peak since 2012. The Central Bank of the Argentine Republic (BCRA, for its Spanish acronym) increased its reserves by US$ 2,484 M.
Although prices were volatile during the last few weeks, they continue to be way above last years’ levels. Argentinian soybean meal shippings start to recover while corn harvest is coming to an end
Soybean production in Bolivia is mainly concentrated on the jurisdiction of Santa Cruz, with a forecast crop 2020/21 of 3 Mt on a national level. Exports for the soybean complex represent 11% of the total exported for 2020.
The Paraná River, main exit cargo route of agricultural products, will reach on the banks of Rosario city hub of ports its lowest level in decades. This entails logistics, transportation, and industrial costs of an estimated US$ 315 million.
The decline in wheat exports had an above-average impact on Rosario city port hub, generating a drop in shippings share.
Due to the shallowness the river, the importance of the ports in the South of Buenos Aires in connection to corn shippings rises.
The international commodity market showed increases in coarse grain values during last week. The pressure of corn harvest in Argentina keeps the local quote below the prices of Brazil and the United States.
The grain production of crop season 20/21 falls for the second year in a row, while the planted area reaches historical record. 73% of production is forecast to be exported, while the remaining would go to domestic consumption.