The price of soybeans rose 28% on the year: revenues of more than US $ 24,000 million are expected

the price of soybeans increased by 28% so far this year on the Chicago stock market and listed on $ 636, positioning itself very close to the historical maximum. And because of this increase, the soybean complex is expected to achieve record revenues in excess of $ 24 billion.

Since the beginning of 2022, the price of soybeans has had a bullish rally in the international market, with fluctuations throughout this 5 months, but on Friday (now it does not work due to the Memorial Day holiday in the United States ) the increase climbed 28% and traded at US $ 636 per tonne, approaching the historic figure of US $ 651 that came on September 4, 2011.

Una, the drought that South America experienced, which is causing reductions in yields in Brazil and Argentina — the two main markets in the region—. Then added war between Russia and Ukraine which boosted the wheat, but also dragged other crops up. And now add delay of planting in producing areas of the Midwest of the United States due to rains (second producer in the world, behind Brazil).

Only, until the Government of Alberto Fernández, soybeans exceeded US $ 600 on 47 occasions (all in the Government of Cristina Kirchner). And in the period from December 10, 2019 to the present, when the current Government started, It has been 62 days since the crop was exchanged above the mythical figure.

This is good news for the government, at a time when dollars are scarce and there are problems importing basic supplies. In any case, it should be borne in mind that the producer he only receives 32% of the full price due to withholdings -of 33% – and the exchange gap.

The main export complex in the country last year was the soybean complex, which reached total overseas shipments amounting to US $ 23,719 million, exceeded the 2020 mark of 62% and registered its best performanceor history against the previous record was 2014, with US $ 20,814 million, according to the Rosario Stock Exchange. In this way, the soybean complex alone will represent 30% of Argentina’s exports in 2021, increasing its share compared to 2020 (27%) and reaching its highest proportion since 2016 (33% in the year that).

And for this year, according to the same entity, the projection of exports of major agro-industrial products reaches US $ 41,499 million, US $ 3,450 million above 2021.

And the soybean complex will once again be paramount. The entity expects it to generate foreign exchange for US $ 24,009 million, US $ 381 million more than a year ago. This is happening despite the fact that production will drop by 12% compared to the last cycle, when 48 million tonnes were threshed. A) Yes, rising prices will compensate for production losses.

In particular, soybean meal (the main export product) will contribute US $ 12,390 million; soybean oil, US $ 8,176 million; beans, US $ 1,738 million; and biodiesel, US $ 1,705 million.