Argentina’s soybean harvest has been significantly delayed due to rains and persistently low prices, leading to the nation’s weakest soy sales in a decade.
On Tuesday’s Asian afternoon session, the impact of the soybean harvest delay was evident as the commodity’s futures for the July delivery dipped by -0.93% to $12.35 per bushel.
Argentina’s sluggish sales of the oilseeds are seen pressuring the region’s supply amid significant floods already weighing on rival Brazil’s crop.
That is a major issue as the South American country is one of the world’s largest exporters of soybean oil and meal.
According to government data, Argentine farmers had sold 31.00% of a projected soy harvest of 46.7 million metric tons early this month, the most sluggish since the 2014/2015 campaign.
Moreover, until last Wednesday, farmers had collected 61.00% of the planted soybean area, which is lower than the previous season’s drought-affected harvest rate.
Researcher Dante Romano noted that poor weather and reduced prices have held sales back. Farmers typically agree to sales before the crop is collected entirely.
Romano acknowledged the latest sales have been sluggish, saying they were one of Argentina’s weakest in history. He forecasted that only 12.00% of the soy crop had been agreed to, representing around half of the average pace for this time in 2024.
Soybean Sales Stalled as Producers Make a Loss
Earlier this year, soy farmers received about $270.00 per ton, providing them a reason to keep their soybean supplies and expect the market’s recovery.
Experts said that with those prices, producers are not making gains, resulting in a complete delay in sales.
Soy prices have begun bouncing back as concerns over crop losses from floods in Brazil and dryness in North Argentina offset data signaling weaker demand in the US.
Soy futures expiring in July in the Argentina Rosario futures market traded around $315.00 per ton, lower than the $350.00 logged during planting in late 2023. Still, it was above recent lows, which analysts noted was prompting a slight surge in trading.
However, farmer Adrian Farroni expects more soybean price increases ahead. Farroni sold his wheat and legumes while keeping his soy holdings, considering it was not yet the right time to sell.
