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Argentina’s soybean crop losses have far-reaching impact
A global market expert says the damaged crops in Argentina will have a far-reaching impact.
Dan Basse with Ag Resource Company tells Brownfield his team is estimating the Argentine soybean crop at around 25% less because of the weather. “Rarely do we find where a country is blessed with soil conditions or soils like Argentina’s sees this much loss, but it has been just that dry and hot.”
Basse says the Argentine soybean crushers are already struggling to find soybeans. “Argentina was just today reported as reaching as far north as Matto Grosso trying to find soybeans. It’s a long way to truck them and it’s very costly, and then you have all of the issues with currency and taxes.”
Basse says with transportation challenges and a 99% inflation rate, getting soybeans in and out of the country is not an easy feat and, “Renewable diesel has pulled supplies out of the (U.S.) export market. That combination with Argentina having a shortfall really gives world vegetable markets some pause.”
Basse is expecting this scenario to cause soybean futures to go up.
Basse spoke to Brownfield during the Professional Dairy Producers Business Conference in Wisconsin Dells, Wisconsin Wednesday.
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