Trade

More U.S. Soybeans Headed to Argentina

Consistent Supply is Key Element of the U.S. Soy Advantage

Argentina, the world’s third biggest soy producer, booked its largest purchase of U.S. soybeans in 20 years on Tuesday after drought cut its harvest, forcing crushers there to turn to imports.

The U.S. Department of Agriculture (USDA) reported that 120,000 tons of U.S. soybeans were sold to Argentina for delivery during the 2018-19 marketing season that begins September 1. This transaction marks U.S. Soy’s largest sale to Argentina since 1997.

“We’re very rapidly seeing a realignment in soybean trading,” said analyst John Baize, president of John C. Baize and Associates.

Baize said Argentina could import 500,000 to 1 million tons of U.S. soybeans this year. Bulk imports of U.S. soybeans are rare, although Argentina typically brings in some soybeans from neighboring Paraguay. Argentina will need soybeans by October, a time when crushers in the South American country usually lack sufficient domestic supplies, and crushers want to ensure they have enough after this year’s drought.

European buyers have also purchased large amounts of U.S. soybeans in recent days. U.S. soybeans have been a relative bargain due to surging prices in Brazil. China, which buys about two-thirds of global soy exports, was favoring Brazilian supplies and has proposed tariffs on U.S. soybean imports.

Consistent supply is a key element of the U.S. Soy Advantage. The U.S. Soy supply chain meets and exceeds its customers’ needs – regardless of shipment size, product type, location, or even time of year. The U.S. transportation infrastructure is reliable and efficient, which allows its customers to generally experience shorter delivery times when they purchase U.S. Soy versus soy from other sources. With its diverse climate and growing areas, the United States has the ability to produce a consistent, reliable, and sustainable supply of high quality soybeans, rich in protein, oil, and amino acid content.

Jen Del Carmen

Managing Editor

USSOY.org

Jen Del Carmen works as a communications consultant with the United Soybean Board.