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mnvtfarm
Veteran Contributor

Cargill soy plant in Argentina runs out of beans

BUENOS AIRES (Reuters) — U.S.-based agricultural export company Cargill has run out of soybeans at a key crushing plant in Argentina, prompting it to suspend operations at the site for two months, local industry sources said on Friday.

Sixty employees were notified of the closure, the sources said, although final approval for the temporary closure has yet to be ordered from company headquarters in Minneapolis. The company had no immediate comment.

 

Soooo what happened to the never ending SA soybean crop? Looks like the US will be exporting soybeans to SA this year.

 

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16 Replies
c-x-1
Veteran Advisor

Re: Cargill soy plant in Argentina runs out of beans

it shouldn't matter mnvt......recently, someone commented that noones feedin' much meal any more --- too many other substitutes or something to that affect..........the trick would be if they could figure out a way to make the cbot bean and meal paper tasty and nutritious enough???????? ya just never know.

 

sarcasm aside, wonder if this news will affect cash markets?

mnvtfarm
Veteran Contributor

Re: Cargill soy plant in Argentina runs out of beans

It won't make any difference what so ever to our cash price.

 

I just think it's kind of funny that they exported all the raw beans to China so that China can make their own meal and oil, and now Argentina has to shutter their own processing plants till March.

 

Do you suppose that Cargill maybe thought they were going to have plenty of beans in the country to export AND keep the crush plants running based off of some BS gov't supply and demand numbers?

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Shaggy98
Senior Advisor

Re: Cargill soy plant in Argentina runs out of beans

Cargill is a huge company with more than just an ace up their sleeve I'm sure. As time goes on, I bet there is more to this story than they are leading us to believe. Strategies aren't just for board games any more.
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rayjenkins
Veteran Advisor

Re: Cargill soy plant in Argentina runs out of beans

over-capacity in Argentine crush industry runs 25-35%, which means "somebody" is going to be idle part of the year, every year

 

the Argentine crush industry does not have a huge domestiic market to feed....very export oriented and many of the crush plants are located right at the ports

 

and besides, what ever happened to "the customer is always right"::

 

If China, or any other customer,  wants to buy whole beans instead of products, are you going to tell them no??

Shaggy98
Senior Advisor

Re: Cargill soy plant in Argentina runs out of beans

So Ray, are you confirming my comment? This is just one of Cargill's many strategies?
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ECIN
Senior Advisor

Re: Cargill soy plant in Argentina runs out of beans

Shaggy - I think what Ray is saying here -- is Non Event .

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ehoff4187600
Frequent Contributor

Re: Cargill soy plant in Argentina runs out of beans

Cargill has a strategy in every single market they are in. In soy processing and corn milling it is to buy their inputs as cheaply as possible and to sell their end products as high as possible all the while mitigating risks with the tools they have at their disposal. That is exactly the same strategy every farmer has and every small medium and large business. We owe it to ourselves and they owe ot to their employees and shareholders.

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puffster
Contributor

Re: Cargill soy plant in Argentina runs out of beans

If you think about it, Bunge did the same thing last spring at the Emporia, Kansas plant..shut it down for lack of beans, but odd enough would not buy new soybeans that were not contracted at that time.. They will contract new  beans now and will soon open back up..so I hear.

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farmerguy89
Advisor

Re: Cargill soy plant in Argentina runs out of beans

Bunge prints ads every week asking for beans here.
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