Soyabean production in Argentina is expected to increase in 2024/25 due to a larger second crop, according to a report by the US Department of Agriculture (USDA).
Production was estimated at 51M tonnes, up 1.5M tonnes from the previous harvest, the 1 May report said.
According to the USDA’s Foreign Agricultural Service (FAS) Argentina: Oilseeds and Products Annual, the soyabean planted area is forecast to increase to 17.8M ha with an increased area for the second soyabean crop due to concerns over a dry year and the potential threat of the chicharrita (leafhopper) in corn.
The increase in soyabean planted area would come at the expense of wheat planting and first crop corn, with planting of both expected to decrease due to low prices and low returns, the report said.
The FAS report maintained the production estimate of 49.5M tonnes for 2023/24, about 500,000 tonnes below the official USDA estimate but the same as the FAS March update.
While a good crop was expected this year, the USDA said the results would be held back by hot and dry conditions in mid-January.
Soyabean crushing and exports in 2024/24 were also expected to recover to 40M tonnes and 7.3M tonnes, respectively.
Soyabean feed and domestic consumption was forecast to increase slightly to 6.3M tonnes with a return to normal production levels and expectations of a modest increase in demand from the poultry industry in the next few years.
Domestic soyabean oil consumption for biodiesel usage was forecast up slightly to 2.1M tonnes as increased crushing would create more supply for domestic oil production and global edible oil supply constraints continued to ease, making biodiesel more competitive, the report said.
Argentina is the world’s leading exporter of soyabean meal and oil with huge crushing capacity and well-developed industry and export infrastructure, particularly along the Paraná River.
The European Union (EU) was again expected to be the top market for Argentina’s soyabean meal exports followed by strong buying from Vietnam and Malaysia.
Egypt became a large buyer last year, and industry sources expect these purchases to continue into the next year, according to the report.
The USDA forecast Argentina’s soyabean meal exports up at 27M tonnes in 2023/24 and 2024/25 with increased production and crushing.
Soyabean oil exports were also forecast to increase to 5.3M tonnes.
