Analysts expect Argentine farmers to sow more corn than ever this season, while soybean planting falls to a 15-year low, due to export policy and the lack of a regulatory framework for genetically modified seeds, reuters analysts Hugh Bronstein and Maximilian Heath said.This season, Argentina overtook Brazil and became the world’s second-largest corn exporter. Thanks to the huge soybean milling plants on the banks of the Paraná River in Argentina, the country remains the main supplier of soybean meal used to fatten pigs and poultry from Europe to Southeast Asia.
At the same time, soybean production is lagging behind. One of the main causes they point to is the failure to enact a “Seed Law” that has harmed access to modified soybeans that can withstand an increased risk of drought. For its part, the Rosario Stock Exchange estimates that Argentine farmers will plant an all-time record of 7.84 million hectares of corn this year, while soybeans will fall to 16.40 million hectares, the lowest level since 2006, marking the sixth consecutive year of oilseed decline. The Stock Exchange expects the 2021/22 corn crop to be 55 million tonnes, while the soybean harvest will reach 49 million tonnes.
The Buenos Aires Grain Exchange (BdeC) projects a corn planting by 2021/22 on a record 7.1 million hectares. “Late planting allows corn yields to remain more stable in dry years, while soybean yields fall dramatically,” said Esteban Copati, chief analyst at BdeC.
More corn from Argentina could help supply the world market at a time of low supply and high prices. The U.S. government cut its outlook for corn production in the world’s top producer by 2.7% last week.
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