Argentina’s soybean industry becomes increasingly dependent on imports from Paraguay

Argentina’s soybean industry is becoming increasingly dependent on soybean imports from Paraguay to keep its crushing plants operating, as domestic farmers are selling their harvest at the slowest pace seen in recent years, brokerage firm ActivTrades said on Thursday.

During the first four months of 2026, roughly one out of every four tons of soybeans crushed in Argentina was imported, analyst Alexander Londoño said in a research note.

Argentina’s oilseed processing industry has been able to maintain high crushing levels in the short term thanks to Paraguay’s proximity, extensive crushing capacity around the Rosario hub, and temporary import arrangements. However, the analyst warned that risks remain related to logistics costs, river conditions, and the availability of Paraguayan supplies.

Shrinking crushing margins highlight the need to increase domestic soybean deliveries in order to protect Argentina’s leadership in the oilseed processing industry.

At the same time, Brazil continues to strengthen its position in global soybean markets. During the first half of 2026, Brazil is estimated to have exported about 12.3 mln tons of soybean meal, compared with 13.3 mln tons exported by Argentina, indicating that the gap between the two leading exporters is narrowing.

Argentine farmers are also selling unusually small volumes of their new wheat crop despite rapid planting progress, according to the Rosario Grain Exchange. The exchange attributed the slow pace of sales to lower forward prices and concerns over future supplies.

A sustained increase in prices could encourage Argentine farmers to accelerate sales, but producers are also taking export taxes, exchange rate fluctuations, and liquidity needs into account. With only 26% of the soybean crop sold at fixed prices by mid-year, Londoño said a short-term price rally is unlikely to result in a significant increase in producer selling.

Tags: soybean, Argentina, Paraguay