From exporter to importer: Argentina buys over 1 M tons of Brazilian soybeans

Due to a drought-induced crop failure in Argentina, the third-largest global soybean producer has turned to Brazil to purchase 1.04 million tons of soybeans to supply its oil and soybean meal industries. The drought in Argentina caused a 43% drop in its soybean production, resulting in a harvest of 25 million tons in the 2022/2023 season, according to the United States Department of Agriculture, making it the second-largest soybean producer in the world, just behind Brazil.

Mato Grosso, a major soybean-producing state in Brazil, contributed 32% of the total soybean volume of 80.85 million tons between January and August this year, amounting to 25.92 million tons. The record-breaking exports from the state can be attributed to high production levels and a decline in soybean prices, which increased the competitiveness of the product in the international market.

The quantity of soybeans sent to Argentina surged by a remarkable 1,177.98%, setting a record in the historical series that began in 1997. “Our Argentine neighbors had never purchased such large volumes before. To put it into perspective, the total amount bought by Argentina in the entire historical series (from 1997 to 2022) did not surpass 45,000 tons, and this year alone, they have already imported 1.04 million tons,” states the Mato Grosso Institute of Agro-Economics (Imea) in a soybean report.

See below the increase in year-round exports of soybeans from Brazil to Argentina between 2019 and 2023. It is worth noting that the data available for the current year only reach July 2023. The data is from DataLiner.

Total soy exports to Argentina | Jan 2019 – Jul 2023 | WTMT

Source: DataLiner (click here to request a demo)

China and Mexico have also increased their purchases of Brazilian soybeans, with increases of 5.74% and 106.84%, respectively.

Source: O Documento

To read the original news piece, see: https://odocumento.com.br/argentinos-importam-soja-em-volume-historico-e-mato-grosso-lidera-ranking-de-exportacao-no-pais/

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