Argentina becomes net soybean importer amid strong processing demand

Over the past five months, Argentina imported more soybeans than it exported, effectively becoming a net importer of the crop. A year earlier, the country remained a net exporter over the same period. The shift in the trade balance comes despite strong soybean crops in recent seasons.

The main factor is strong domestic demand from the processing industry. Argentine crushers are maintaining high utilization rates thanks to strong export demand for soybean meal and soyoil, while part of their raw material needs are being covered by imports, including supplies from Paraguay. Biodiesel production is also generating additional demand for soyoil.

In April–August, Argentina’s soybean meal exports increased to around 13.5 mln tons, up 0.5 mln tons from a year earlier. Shipments rose to markets including the EU, Turkey, Iraq, Vietnam and Central America. In August alone, soybean meal exports totaled around 2.9 mln tons.

Soyoil exports also remained high. August shipments are preliminarily estimated at 630–650 thsd tons, compared with 610 thsd tons a year earlier. In March–August, exports to India and Nepal increased by 23% to a record 1.9 mln tons.

At the same time, Argentina stepped up biodiesel production, which rose to 140–150 thsd tons in August, the highest level in two years. Biodiesel exports are estimated at 70–80 thsd tons, up from 50 thsd tons a year earlier, with the entire volume shipped to the EU. Strong processing demand is therefore having an increasingly significant impact on the country’s soybean balance.

Tags: soybean, imports, Argentina