Argentina's Soybean Losses Build
From our freelancer in Argentina, Luis Vieira, says the flood-damage to soybeans is growing.
Consultancy Agripac, based in Buenos Aires and Córdoba, has released a new estimate for Argentina's soybean crop after several weeks of floods and fires in the country. They forecast a production of 50 million metric tons. The previous estimate was at 55 million metric tons. These losses of five million metric tons financially would mean nearly US$ 1.7 billion less in Argentinian farmer's pockets or 7% of the total harvest value.
Over the last few days, rains have continued in key soybean producing regions such as the south of Santa Fe, south of Córdoba and northwest of the Buenos Aires province. In the case of Venado Tuerto, a municipality in Santa Fe, the precipitation accumulated over 16 inches from December 15th to yesterday, which is the highest moisture in 27 years. Very similar precipitation was seen in the same period in Rafaela, also in Santa Fe. In the province of Córdoba, the rains are 50% above the average.
But in the case of several municipalities of south of Santa Fe, such as Hughes, northwestern Buenos Aires, such as General Villegas, there were over 23 inches in the past month alone.
"In the case of our citiy, the precipitation is measured since 1913. There was never so much rain like today," farmer Alberto MArchionni from Hughes told prominent newspaper La Nación.
For meteorologist Eduardo Sierra of the Buenos Aires Cereal Exchange there will be new rains affects these same regions from the period of January 19th to January 25th.
According to the Rosario Board of Trade, nearly 2.4 million acres of soybeans still need to be planted. Some believe that there is still time to recover at least 1.2 million acres that are now under water can dry up and some acres yet can either planted or replanted until the end of the month.
Well, will the market keep piling on the gains, on this one?