Paraguay’s exports of soybeans are picking up pace, with shipments reaching 1.13 million metric tons in May, up around 34% from the previous month, according to data shared with Reuters. This uptick in exports comes as the landlocked South American nation sees improved global demand and stronger prices for the oilseed.
Earlier in the year, Paraguay’s soy shipments had been stalled by low river levels, which are crucial for the barges that transport the grain downstream. However, the situation is now improving, allowing Paraguayan farmers to speed up their sales.
Paraguay is expected to harvest a record soy crop of over 10 million tons for the 2023/24 season, overtaking drought-hit neighbor Argentina as the third-largest exporter of soybeans. Manuel Ferreira, a local consultant and former finance minister, noted that the Paraguayan farmer is now in a better position, as July soy futures in Rosario have recovered from a low of around $280 per ton in February to around $325 per ton.
The data shared by Paraguay’s national tax revenue directorate shows that until the end of May, the country had exported almost 4.6 million tons of soybeans. Hector Cristaldo, president of the Paraguayan grains production union, said that soy farmers had been “waiting for a rebound” in prices after holding on to their crop amid the disruption to barges caused by shallower rivers.
Ferreira also highlighted that demand is picking up from neighboring Argentina, one of the biggest global exporters of crushed soyoil and meal, which are processed from soybeans in massive plants along the Parana River before being exported.
However, Paraguay’s rivers remain low, with a severe drought in the Pantanal wetlands in western Brazil impacting water levels. Sonia Tomassone, foreign trade adviser at the Paraguayan Chamber of Oilseed and Cereal Exporters (CAPECO), said that barges are not being loaded to their full capacity, causing delays in shipments.
The level of the Paraguay River near the key grains port of Villeta stood at 0.85 meters on Monday, well down from 3.5 meters a year ago, though better than in March when it was near zero. More dry weather is expected, which could continue to affect the country’s ability to transport its soy exports.