Argentina's oil mills currently only process half of the soybeans as usual, the Rosario Grains Exchange announced on Friday. Community workers and the police prevent trucks from getting to the factories. Human health is now a priority.
In order to slow the spread of the Corona virus, the mayors of dozens of communities have stopped the transport of grain. In contrast, the government in Buenos Aires has ordered the streets to be cleared again.
An interruption in the supply of soybean meal from Argentina, the world's most important manufacturer of this feed, means that buyers are already looking for alternative suppliers. This could benefit Brazil, for example, where the government ensures that the supply of raw materials is maintained.
In contrast, chaos rules in Argentina. While some municipalities are clearing the streets for goods traffic, others are closing them. For many trucks there is neither an entry nor an exit.
Brazil, on the other hand, ordered that truck stops, petrol stations and restaurants be essential for the economy.Freight transport should ensure that the supply of feed and food as well as the export is maintained.
At the beginning of last week, two federal states were quarantined in the center of the country because of the Corona crisis. There, however, the soybean harvest was only 30% complete. A community ignored the quarantine measures and the farmers continued to harvest.
Argentina produces the largest amount of soybean meal for the world market. This crisis comes at the worst possible time for local agriculture. Farmers have started harvesting corn and soybeans. These are the main agricultural export commodities that are billed in US dollars.
Even before the Corona crisis, the export of agricultural raw materials was a victim of government mismanagement and is urgently needed to reorganize the state budget. Although the export grain in the fertile plains of the Argentine Pampas brought prosperity to the country, the government has been struggling with an economic crisis for years and is heavily indebted to the banks.
Source
HANSA Terminhandel
