Argentine farmers have sold about 27.2 million tonnes of 2021/22 soybeans as of September 14

Foreign media news on September 21: Argentina’s Ministry of Agriculture released a report showing that Argentine farmers’ soybean sales surged, but overall sales continued to lag the same period last year.

As of September 14, Argentine farmers had sold 27.18 million tonnes of 2021/22 soybeans, up 2.315 million tonnes from a week earlier and down from 30.05 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 September.

The Argentine Finance Minister announced on September 4 that from September 5 to 30, Argentine soybean farmers sold soybeans at a settlement exchange rate of 200 pesos per US dollar instead of the official 140 pesos, which led Argentine farmers to actively sell soybeans.

Previously, due to high inflation in Argentina (which may be close to 100% this year) and the continued depreciation of the currency, Argentine farmers were reluctant to sell soybeans, using soybeans as a hard currency against a weakening 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 1.335 million tons of 2022/23 soybeans, an increase of 28,000 tons from a week ago and down from 1.796 million tons in the same period last year.

The USDA in September projected Argentina’s 2022/23 soybean production at 51 million tonnes.