Argentina is giving up its dominance as a major exporter of flour. Which country took it from it?
Due to the drought, Argentina will move to second place this year, although it maintains its position in other commodities.
For 25 years Argentina held first place Source of soy flour, the country’s main export product. Now, after the drought and its impact, it has declined and will take its place Brazil.
According to a report from Rosario Stock Exchange (BCR), the dry season caused a decline in production Soy flour For the current season, while the South American giant set a record Record size Harvest the oilseeds and, consequently, soybean meal.
According to the agencyTo BloombergThe result of both events is this For the first time since the 1997/98 season, Argentina “will lose its position as the world’s leading exporter of soybeans and will be overtaken by Brazil.”While Argentine exports of this product amounted to 21.1 million tons, a decrease of 21% compared to the last campaign, Brazilian exports will reach 21.5 million tons.
Soybeans: How do producers rank?
Argentina lags behind China, the United States and Brazil. The fifth place is closed by the European Union. Between the five of them, they concentrate 80% of the world’s soybean meal volume. The reason for Argentina’s dominant position is that unlike the United States, China and Brazil, “domestic consumption in Argentina is low compared to total production, allowing for a large exportable balance.”
By 2024, BCR estimates that at the beginning of next year, “Global production and export supplies of soybean meal will increase significantly, so a sharp decline in prices is expected between January and June 2024.”A decrease ranging between 24% and 29% compared to the previous year.
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