Poor harvest weather and the corona virus are a major blow to the Argentine agricultural export industry. The Rosario Grains Exchange lowered its harvest estimate yesterday. Many cargo ships are anchored in the Parana river, waiting to be loaded.
Argentina is the world's No. 3 largest exporter of corn and soybeans and the No. 1 exporter of soybean meal. An interruption in loading from Argentina could change the entire flow of goods for agricultural products around the world. This would primarily affect pig fatteners, poultry fatteners and beef producers in Europe and Southeast Asia. Providers from the USA and Brazil are available as alternatives.
Argentina's soybean harvest is now estimated at 49.5 million tons by the Rosario grain exchange. Previously, 52 million tons were assumed. Poor weather conditions reduced yield expectations.
In addition to a smaller crop, farmers in Argentina are unsettled by the effects of the corona pandemic. There are various logistical problems when transporting the raw material to the oil mills or the export ports. 28 cargo ships are currently waiting in vain for loading in front of Rosario.
This is also due to the fact that health tests by port personnel take a long time. Transport unions insist that the spread of the virus be followed by strict closings of the roads to and from the ports.
Argentina officially complained of 34 deaths from corona infection and 1,133 people were confirmed to be infected.
The government in Buenos Aires is struggling with $ 100 billion in debt to banks and private donors, as well as the World Monetary Fund. Agricultural exports bring the highest sums (in USD) to the country.
Source
Hansa Terminhandel GmbH
