Buenos Aires, Jun 25th. According to official data from Ministry of AgIndustry, soybean crushing declined to 3.7 million metric tons (MMT) during May, a 19% below than May 2017, when oilseed industry crushed 4,5 MMT. In the first five months of the year, industry processed 15.2 MMT, 13% down last year.
But 16% of that raw material was supplied by Paraguay. Argentinean Census and Statistics National Institute shows that between January to May, oilseed industry imported 2.4 MMT, 96% of which came from Paraguay. Due to the shortage of raw material, the industry is importing 147% more soybean than during 2017. It is estimated final imports will reach a record volume that surpasses 4 million metric tons along this year. Oilseed industry has invested around one billion dollars to import the soybean.
In the other hand, soybean exports have plunged this season to 686,000 tons, versus 2.7 MMT in the same period of 2017. “It’s clear that oilseed industry is priorizing exports of meal and oil instead the bean”, says RIA Consultores’ weekly report. “But commercial war between United States and China could put more pression over bean exports. Maybe this push farmers to plant more soybean next season”, add the report.
Meanwhile, soybean meal exports reached 11.2 MMT from January to May, versus 12.7 MMT in 2017.