Drying conditions threaten Argentine soy exports as the prospect of underperforming yields caused a recent rise in prices. The low soil moisture content in Buenos Aires, Córdoba, and Santa Fe is being blamed for the poor USDA Weekly Inspections Report numbers, released on Monday, showing exports down 14%. However, farmers looking to plant later in the season may benefit from the current drier conditions.
Soybeans are able to recover quickly from acute periods of stress, so yields may rebound if rain returns. Global soybean demand is expected to increase with numbers topping out at 341.4 million tonnes. Argentina’s main soybean trading partners are the US and China, moreover, so the risk of a demand slump is low. Monitoring the dry weather conditions and exports out of the country with Gro Intelligence will help to better determine future market value of soybeans into the new year.