Argentina agribusiness bounces back in 2019

According to the Directorate of Economic Information and Studies of the Rosario Trade Exchange, Argentine agribusiness closed 2019 with positive results, as agricultural production in Argentina’s central zone was not affected by the extreme droughts that occurred in the 2017/2018 crop, when results recorded were the worst of the last 50 years.

The 2018/2019 season saw a total grain production of 142 Mt, 46% higher than the previous season (97.6 Mt). If we consider only the most important crops of the Argentine exporting agribusiness complex (soybean, corn and wheat), the totals reached were 127 Mt, considerably higher than the 84.5 Mt of the 2017/18 cycle.

The following chart, based on INDEC data, shows Argentina’s soybean export trends as opposed to the FOB gained:

Source: INDEC

It is worth mentioning that, Argentine soybean exports benefited from the US China trade war.

Further data published by INDEC shows that exports in the last eleven months of 2019 increased 5.8% (US $ 3,257 million) compared to the same period of 2018. Prices in the meantime fell 6.7%.

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