Buenos Aires, September 27th. Following, eFarmNewsAr.com summarizes the most relevant information from the RIA Consultores’ weekly report about the agribusiness economics and politics in Argentina.
1.- Soybean crushing up. Oilseed industry is showing a strong soybean crushing pace. From January to August, industry processed 28.47 million metric tons, 14% up from 2018. This volume is the third highest in the historic records, after 2016 (30.20 MMT) and 2017 (29.47 MMT).
2.- Gasoil shortfall. Government is freezing the update of the gasoline and gasoil prices, trying to not generate more inflation in the face of the general election October 27th. But one-third of the gasoil in Argentina is imported, and oil companies stopped imports due to the international price is well above than the domestic one. Thus, gas stations are out of stock, just when the seeding of the summer crops are running. Some shortfalls are mentioned in the north of the country.
3.- Wheat at risk. This campaign, farmers planted a record acreage of wheat and a 21 MMT harvest is still expected. But the lack of humidity in the soils is threating the crop. Analysts from the Rosario Commerce Exchange estimated that 800K hectares of wheat over a national area of 6.6 million hectares (12%), mostly in the Buenos Aires province, is in a “regular to bad” conditions. Lack of rains in the next weeks could cut the initial 21 MMT harvest forecast.
4.- Positive foreign trade balance. During August, once again exports surpassed imports. It was the eleventh month in a row with a positive balance in foreign trade. Since January, Argentina accumulates US$7.7 billion, mostly to the plunging of imports, due to the brutal currency devaluation after May 2018.
5.- Declining soybean imports. A largest 2018/19 soybean harvest reduced the reliance of the industry on the imported bean. In August, soybean imports dropped US$160 to less than US$90. But soybean exports rate surpassed soybean oil and soybean meal ones. Into respect to 2018 soybean exports rose 221% from 534 to 1,718 million dollars, while soybean oil exports just increase 22% from 1,953 to 2,387 million dollars, and soybean meal dropped 7% from 6,350 to 5,887 million dollars.