USDA Forecasts Strong Argentine Soybean Crop

The USDA expects a strong soybean crop in Argentina for the 2024/2025 marketing year, though the outlook could be affected by the developing La Niña weather pattern.

In a report titled "Argentina: Oilseeds and Products Update" published on 6 January, the USDA's Foreign Agricultural Service said that as of 31 December, 85% of the soybean crop had been planted, with development progressing well and 93% of the planted crop rated in good or excellent condition.

"However, potential drought conditions caused by La Niña could affect the crop during the growing season," the department added.

It noted that "despite these challenges, Argentina is on track for a record soybean crush, forecast to reach 42 million tonnes, supported by strong exports and a steady crush rate."

Soybean production is expected to reach 52 million tonnes, the highest level in six years.

"This is driven by an increase in soybean planted area at the expense of corn, along with consistently favourable weather conditions and sufficient rainfall over the past few months," the department said.

The agency also raised its forecast for soybean planted area to 17.8 million hectares in 2024/2025, an increase of 900,000 hectares from its initial projection, while soybean exports are expected to rise from 5 million to 7.3 million tonnes.

According to a report issued by World Grain on 8 January, Argentina was the world's third-largest soybean producer and fourth-largest exporter of soybean meal in 2023/2024.

Source: World Grain