Argentine exports of soy and oil products down $620 mi due to low water level on Paraná River

Argentina has already lost US$ 620 million in soybean meal and oil exports due to the drought in the Paraná River, according to a report by the Rosario commerce exchange.

The low level of the river in the Timbúes-Oceano stretch has limited the flow of cargo in the Grande Rosário region and caused a drop in export prices for the main by-products of soy and corn.

“In this sense, the higher logistical costs to take products from the ports to the edge of Paraná have an impact on export prices of products originating in greater Rosario, expanding the differential with Brazilian merchandise,” says the exchange in the text.

According to the commerce exchange, the gap between FOB Paranaguá and FOB Up Rio/Rosário for soybean meal is currently at its worst level – for Argentines – since 2013. “The situation is even more disadvantageous for Argentine soybean oil since 2008 there has not been such a big price differential.”

In the study, the exchange accounts for losses since the beginning of this year, with more than 25 million tons of by-products from the soy complex already shipped since January. However, he reports that the level of the Paraná River in the highlighted section has been low for some time. In the last two years, “only in February 2021 was there an average height above the minimum height of 2.47 meters”, says the text.

Source: Valor Econômico

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