Argentina’s soybean production to surge 5% in 2024-25 despite challenges

ARGENTINA – Argentina is anticipated to produce 52 million tonnes of soybeans in the upcoming 2024-25 harvest season, marking an increase from last season’s yield of 49.5 million tonnes, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

The USDA outlined that this growth projection, an increase of 5.1%, reflects a shift in planting preferences among Argentine farmers who are pivoting away from corn.

The shift stems largely from fears of “corn stunt” disease, low corn prices, and concerns about dry weather conditions.

Despite the expected boost in production, the report notes that Argentine soybeans face “several complex challenges and opportunities shaped by weather, economic pressures, and production practices.”

One of the most pressing concerns is weather. Higher-than-expected average temperatures threaten to exacerbate already existing soil moisture deficits, potentially impacting soybean yields.

In some regions, the low soil moisture levels have already delayed early planting, creating further uncertainty about the season’s output.

Economically, soybeans present a more cost-effective choice compared to other crops. With production costs significantly lower than those of corn, many farmers see soy as the more viable option in light of Argentina’s challenging financial landscape.

Yet, they face an additional hurdle,  a shortage of high-grade seed stock. To mitigate this, farmers are adopting a lower planting density strategy, which, while improving germination space for each seed, could reduce the total yields.

Overall, the combination of environmental, economic, and technical challenges paints a complex picture for Argentina’s soybean sector in 2024-25,” the FAS report states.

According to the report, while increased acreage and technological advancements may support production, the adverse weather and compromised seed quality may prevent yields from reaching their full potential, and the financial strain on producers remains significant.

Meanwhile, Argentina’s soybean crush is set to rise from 41.5 million tonnes to 42 million tonnes this season.

The FAS said this increase reflects a resurgence in the country’s soybean processing industry, bolstered by higher domestic production and consistent soybean imports from neighbouring Paraguay.

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