The drop in soybeans, which is facing its lowest harvest in more than 20 years, is highlighted.

Argentina, the world’s largest exporter of soybean products, is facing its lowest harvest in almost 25 years. This scenario led to soybean factories owned by institutions such as Cargill, Bunge Global SA, Cofco International and local processor Vicentin, to be operating at reduced capacity or, in some cases, completely closed. The economic impact is compounded by an unexpectedly low wheat crop, with exports of all crops, including sunflower seeds, anticipated to reach just US$25.5 billion, marking a 39% decrease compared to the previous season (2021-22), Bloomberg reported.

The Rosario Stock Exchange, located in the port city that houses most of Argentina’s soybean processing plants, estimates the economic impact of lower crop exports at US$16 billion.

Truck deliveries, a key indicator of the situation, show a significant decline. On the first Friday of November, only 382 soybean loads were recorded in the Rosario area, down 59% compared to the same day last year, according to transportation agency AgroEntregas.

Serious situation

In response to the crisis, several soybean plants have brought forward their annual maintenance, closing production lines ahead of schedule. It is reported that idle capacity could reach 70%. This scenario led Brazil to overtake Argentina as the world’s leading exporter of soybean meal for the first time since 1998.