The Buenos Aires Cereal Exchange released the soybean campaign closing report, reviewing the main events that marked the harvest.
The 2019/20 cycle ended with a production of 49.6 million tons, reflecting a drop of 11.4% vs. 2018/19 and a decrease of 6.5% vs. last 5 years.
The Buenos Aires entity estimated the contribution to the economy that is expected from the chain. In exports, the complex would contribute $16,927 million in the 2019/20 cycle, against $18,728 from the previous campaign. This is partly due to lower Chicago prices, which are affected by a large harvest in Brazil, the coronavirus, and tension between the United States and China.
With the fall in exports, where withholdings have an important participation after the recent increase that brought them to 33%, the total collection of the soybean chain would be US $ 6,188. This income for the State represents a fall of 14% against last year.
Finally, the Gross Product of the soybean chain would reach $14,415, against US $ 15,927 in 2018.
The sowing of the 2019/20 campaign was 17.4 million hectares, reflecting a fall of 7% against the average of the last 5 years. This area represents 67% of the total sown in the thick season, adding to corn, sorghum and sunflower.
Regarding the 2019/20 rotation, the first soybean represents 68% and the second soybean 32% of the surface.
The Cereal Exchange also evaluated the impact of the climate on the production forecast. In total, there were three upward adjustments in the harvest estimate and two falls due to the lack of humidity in some regions and the high temperatures.
Against what was expected at the beginning of the campaign, 3.6 million tons were cut. The most affected regions were: NOA, San Luis, Núcleo Norte, Núcleo Sur, Center-East of Entre Ríos and sectors of Buenos Aires.
The national yield in the 2019/20 campaign was 29.4 qq / Ha, reflecting a drop of – 12.4% vs 2018/19. In first-class soybeans the national average was 36.6 qq / ha and in second-rate soybeans 26.6 qq / ha.