Argentine farmers have sold about 22.1 million tonnes of 2021/22 soybeans as of Aug. 10

Foreign media August 18 news: Argentina’s Ministry of Agriculture released a report showing that the pace of soybean sales of Argentine farmers continued to lag the same period last year.

As of Aug. 10, Argentine farmers had pre-sold 22.13 million tonnes of 2021/22 soybeans, up 566,000 tonnes from a week earlier and down from 27.33 million tonnes a year earlier.

The Buenos Aires Grain Exchange forecasts Argentina’s soybean production to reach 43.3 million tonnes in 2021/22. The U.S. Department of Agriculture projected Argentina’s soybean production at 44 million tons in August.

Argentine farmers are reluctant to sell soybeans as hard currency against a weaker peso. Because Argentine farmers sell soybeans for peso income, the depreciation of the peso means it is more cost-effective to hold soybeans than to hold the peso.

In addition, Argentine farmers have pre-sold 1.059 million tons of 2022/23 soybeans, an increase of 56,000 tons from a week ago and down from 1.568 million tons in the same period last year.

The U.S. Department of Agriculture in August projected Argentina’s 2022/23 soybean production at 51 million tons.