Soybean output for Argentina, is forecast at 54.5 million mt, up 3% on previous estimates in 2019-20 crop year (November-October), on good crop conditions across the country, according to the Buenos Aires Grains Exchange. The world's third largest soy producer and exporter is projected to export 8.2 million mt of soybeans in 2019-20, down 10% on the year. The country's soybean meal exports are forecast at 30.85 million mt, up 10%, while soybean oil shipment are projected at 6 million mt, up 14% year on year.
U.S. soybean futures on Wednesday extended a rebound from a sharp drop earlier this week after the Argentine Ministry of Agriculture suspended the registration of agricultural exports until further notice. The movement was seen as foreshadowing a jump from 30% to 33% in grain export tariffs that Alberto Fernández’s government might announce this weekend, thus shifting exports to the United States.
Argentine grain and derivative exports will allow the entry of foreign currency for about $ 25 billion during 2020, says a report from the Rosario Trade Exchange. The improvements in climatic conditions project that the 2019-20 harvest will be the second highest in the country's history. Exports for wheat are expected for $ 2.46 billion, corn $ 5.44 billion, and soybean with its derivatives $ 16.8 billion.