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.
During the last decade, Paraguayan soybean production has increased by 42%. It is remarkable the role of Argentina as export destination, absorbing in 2020 62% of the complex’ exports.
2020/21 exported tons of wheat falls 30% year-on-year. The increase of international prices softens the fall of the export value. Next crop purchases stand firm. Fund positioning turn back to positive territory.