Foreign media May 12 news: Argentina’s Ministry of Agriculture released a report showing that the pace of soybean sales by Argentine farmers continued to lag the same period last year.
As of May 4, Argentine farmers had pre-sold 14.62 million tons of 2021/22 soybeans, up 555,000 tons from a week earlier, but down 15.4 percent from 17.29 million tons in the same period last year.
The Buenos Aires Grain Exchange forecasts Argentina’s soybean production to reach 42 million tonnes in 2021/22.
Despite high international prices, Argentine farmers remain reluctant to sell soybeans as a 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 sold 40.85 million tons of 2020/21 soybeans, up 107,000 tons from a week earlier, but down from 42.53 million tons a year earlier.
Argentina’s 2020/21 soybean production, which was harvested last June, was 43.1 million tons, down from 49 million tons in 2019/20.