Argentinian farmers are now harvesting their corn and soybeans, but are reluctant to sell. In addition, many measures to contain the Corona crisis are slowing the flow of goods to the deep-sea ports on the Atlantic.
The delay in supply is explained by speculation on higher raw material prices due to the rapidly spreading corona virus. Now buyers are already switching to other providers, such as Brazil and the USA.
The Argentine Ministry of Transport announced yesterday that workers in the grain terminals and truck drivers who bring grain and oil seeds to the export ports are exempt from the crisis-related restrictions. Critics already warn that it is now only a matter of time before some of these workers are tested positive for Corona. This could increase uncertainty again.
Farmers will probably be storing a larger part of their harvest now, especially since the harvest is progressing quickly and truck cargo space is becoming scarce. Since the prices are not good enough for the farmers, they will probably continue to harvest until autumn. Soybeans currently cost $ 226 / tonne in the country, compared to $ 245 / tonne a year ago.
Some farmers now only sell so much that they can pay their current bills.
The soybean harvest in Argentina is estimated at 51.5 million tons and the corn harvest at 50 million tons.
Source
HANSA Terminhandel
