Argentine soybean harvest yields 48% increase YOY

Argentine 2018/2019 soybean harvest has been harvested with positive results: the highest yield in the last 19 years, at 3.36 tons per hectare, according to a report released last Thursday (07/04) by Buenos Aires Grain Exchange.

Total soybean production reached 56m tons, an increase of 48% over the previous year, putting the country at a better level to compete with Brazil, which is the world’s largest grain exporter.
The primary soybean import market is China, which accounted for more than 60% of the total soybean purchases in the 2017/2018 harvest.
Favorable weather conditions since the beginning of this year have raised the harvest level by 1.3% ahead of the five-year average, according to the report.
Last year, a prolonged heatwave in Argentina affected the forecast of humidity and soy production. This year, favorable weather conditions caused soybean yield and production estimates to be revised upwards.

According to the United States Department of Agriculture, Argentine exports of soybean meal from the 2018/2019 crop are expected to grow 10% in the year to 31m tons, and soybean oil exports 11% in the year, to 5.6m tons, boosted by the increase in milling volume.

The following INDEC graph shows Argentina’s soybean export trends against FOB earned:

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