Argentine soybean farmers are facing a perfect storm of rain-drenched fields and low prices, leading to the slowest pace of crop sales in the country in over a decade.
In the key grain-producing region of Pergamino, farmer Adrian Farroni is just now ramping up his soybean harvest, which was delayed by persistent rainfall. Generally, the harvest would start in April, but Farroni says they’ve only been able to work the fields for two days a week due to the wet conditions.
Government data shows that as of early May, Argentine farmers had only sold 31% of an expected 49.7 million metric ton soybean harvest – the slowest pace since at least the 2014/15 season. Typically, farmers would have agreed to sales for around 60% of the crop by this time.
Dante Romano, a researcher at the Agribusiness Center of the Austral University in Rosario, estimates that deals have only been struck for 12% of the soy crop, about half the average pace for this time of year. He attributes the slow sales to a combination of poor weather and low prices.
The delayed Argentine harvest comes as rival Brazil has also faced major floods that have impacted its soybean crop. This could strain regional and global soy supplies, as Argentina is one of the world’s biggest exporters of soyoil and meal, which are processed from soybeans.
Farmer Farroni says he and his peers are holding off on sales, hoping prices will rise as the harvest progresses. But the wet conditions and sluggish sales pace are creating challenges for Argentina’s crucial agricultural sector.
The slowdown in the Argentine soybean harvest and sales could have ripple effects across global oilseed and livestock feed markets, which rely heavily on the country’s exports. As the situation unfolds, the ability of Argentina to meet its expected export commitments will be closely watched.