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 News

03/10/2017 0:00 - Agricultural Commodities Market
SOFÍA CORINA
Sustainable trend has come back

After the EPA soybean boom, “sustainable soybeans” have become the new hit. While they may sound similar in principle, their uses are different. Whereas EPA soybean was used in biodiesel for the US market, sustainable soybeans cater to EU regulations.

Although the meaning of “sustainable” is exaggerate for this type of soybean, it gets its name from its aim of mitigating greenhouses gasses emissions. These soybeans must come from fields that have not been deforested since 1st of January 2008. In Argentina, almost 85% of agriculture lands meet that condition, but traceability is required for it to be classified as apt for production of “sustainable soybeans”.

The main benefit for producers is that they get a better price, which may courage producers to sell their beans. There are still more than 17 million tons of soybeans from 2016/17 season, of which 15 million are expected to carry over to the next marketing year.

Depending on lot size, sustainable soybeans can get a USD 3 to USD 5 per ton spread over cash prices. Current cash bids stand around USD 252.7 per ton, which means that sustainable soybeans are worth about USD 255 to USD 257 per ton.

Although an average spread of USD 4 per ton might not seem too much, it has a significant effect on profit margins, as the following table shows.

 

As far as demand goes, the EU has already been importing soybean-based biodiesel. Unofficial figures put total exports to that destiny over the months of September and October at around 260,000 tons, and traders remain optimistic for the future if export taxes are to be reduced as planned.

 

As in the case of EPA soybeans, if Argentina has the possibility to export biodiesel to the European Union, the farmer should take advantage of the possibility to obtain an extra profit from “sustainable soybeans”

 

 Institutional video


Institutional Video of the Bolsa de Comercio of Rosario (Rosario Board of Trade)

 Rosario Board of Trade

The Rosario Board of Trade is a centennial institution located in Rosario, in the most important agroindustrial zone of Argentina. Throughout its history it has created and boosted transparent, solid and reliable markets: the Grains Physical Market, the Futures Market, the Capital Market, and the Livestock Market.

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Bolsa de Comercio de Rosario Córdoba 1402 - S2000AWV
TE: (54 341) 5258300 / 4102600
TE: (54 341) 5258325 (Complejo de Laboratorios - servicioalcliente@bcr.com.ar)
Rosario - Santa Fe - Argentina

Oficina Buenos Aires Reconquista 458 piso 7° - C1003ABJ - Cdad. de Buenos Aires.
Tel: (54 - 011) 43280390/1484 43939391/9649- Fax: (54 - 011) 43939649
contacto@bcr.com.ar