Argentina soybean exports to hit 16 million mt, 98% to China

Argentina’s crushing lobby group expects oilseed crushing volumes to reach approximately 33 million mt this year compared to 45 million mt in the previous year, while exports will surge to a record.

The oilseed industry chamber Ciara said that lower crushing rates are due to higher soybean exports, which will reach 16 million mt with 98% of that heading to China.

Lower crushing volumes are also partially due to government tax policy that eliminated the tax differential between exporting soybeans and soymeal and soyoil.

Ciara also noted that another negative issue for the country’s crushing industry is the installation of crushing facilities in countries which currently acquire soybean derivatives products such as China, Vietnam and Indonesia.

Argentine crushing plants squeezed a total of 15.6 million mt of soybeans in the first five months of the year, up versus 15.1 million mt in the previous year and a three-year average of 16 million mt, according to the latest available figures from the Agribusiness secretariat.

However, these figures mask the fact that last year's crop was very poor due to a drought, with Ciara saying on a like-for-like basis crushing volumes are down 10%.

According to the latest figures from the Agribusiness secretariat, the country's soybean production will reach 55.6 million mt in the current cycle, up 47% compared to the 2017/18 season.