Argentina grains exchange trims soy harvest outlook

Corn appears to be picking up acres at the expense of soy

Reuters – Argentine farmers are expected to harvest 48.8 million tonnes of soy in the 2021-22 season, down slightly from a previous estimate of 49 million, the Rosario grains exchange said, citing a slight shift by some farmers toward more profitable corn.

The country’s 2021-22 corn crop is estimated at between 55 million and 56 million tonnes, up slightly versus the exchange’s previous forecast of 55 million, the report released late on Wednesday said.

The separate Buenos Aires grains exchange said Sept. 9 it expected rains over the following week, with up to 25 millimetres of rainfall in some areas of the central Farm Belt, and warned of possible frosts in producing areas in the west and south.

Argentina is a key global wheat supplier, the world’s No. 2 corn exporter and the top exporter of soyoil and meal. Some farmers have recently turned to corn over soybeans, however, to mitigate dry weather and take advantage of higher profits.

The Rosario exchange said the area planted with soybeans in 2021-22 will likely be 16.2 million hectares, cutting 200,000 hectares of planted area from its prior forecast, for a total of 700,000 hectares less than the previous season. Planting is due to kick off in October.

The exchange said current profit margins for soybeans were “lower than corn,” and noted falling yields due to “lack of water” as well as a greater tax burden on oilseeds.

Soybean exports pay a 33 per cent tax, while shipments of soybean oil and meal are subject to a 31 per cent tax. The tax on corn exports is substantially lower at 12 per cent.

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