Argentina Soybean Production Reduction Or Impact On Global Supply And Demand

In 2022/23, Argentina was severely affected by dry weather, resulting in a significant decrease in soybean production. In fact, Argentina, located in the southern hemisphere, has a soybean sales period from October of the first year to September of the second year. Argentina's soybean production has continued to decline in the past three sales years. The US Department of Agriculture estimates that Argentina's soybean production in 2022/23 will hit a 14-year low (33 million tons).

Argentina's Rosario Grain Exchange was even more pessimistic, reducing its production forecast to 27 million tons, the lowest level since 2000/01. As the downstream of soybeans, pressing companies have responded in advance, and Argentina's domestic pressing capacity has also dropped to its lowest level in 10 years. The decline in Argentine soybean production capacity and crushing capacity is expected to have a significant impact on global soybean, protein meal, and vegetable oil trade in the coming months.