Source: Oleoscope (Russia)
Bloomberg reports, citing data from the US Department of Agriculture, that Argentina has purchased 88,400 tons of beans for shipment this season. This move comes at a time when a bumper crop has begun in the US.
According to Commodity3, soybean shipments from New Orleans to the U.S. were $395/ton FOB in October, about $16/ton below the cost of Argentine soybeans.
Oil extraction plants in Argentina, including Glencore-owned Viterra Inc, Cargill Inc and Louis Dreyfus Co, are often operating with unused capacity after industrial processing grew faster than agricultural production over the past two decades.
According to the Rosario Grain Exchange, processors typically supplement local supplies with purchases from neighboring regional countries, mainly Paraguay and Brazil, with imports particularly high this season. On Monday, the USDA said the deal was being reviewed and all data will be included in the Sept. 19 export sales report.
The USDA estimates that US soybean production will reach a record 124.9 million metric tons in 2024-2025. Meanwhile, the US will start the 2024/25 marketing year on September 1 with historically low export sales of soybeans. Export sales of soybeans in the USA have fallen to a historic low.