Buenos Aires, April 22th. The latest numbers from April shows a decreasing activity at oilseed industry. During last month, it been processed 3.36 million metric tons (MMT) of soybean, down 16% from April 2017. The aggregate of the first four months of the year climbs to 11.52 MMT versus 12.96 during 2017 and 14.07 during 2016.
The lack of raw material explains this drop. Due to the severe drought during Argentina’s summer, soybean harvest decreased to 36 MMT, according to Buenos Aires Grain Exchange, from 55 MMt in 2016/17 season. There are some doubts in the marketplace about the carryover. Ministry of AgIndustry estimates it at 12.8 MMT, but consultants and traders think no more than 7 MMT is still in the silobags.
As we said in previous releases, oilseed industry is relying on imported soybean to reduce the unutilized capacity. Just from the US, the industry had bought more than a half million tons, but Paraguay results in the largest supplier.