Oilseed Markets and Production in Argentina

Throughout the last couple of years, Argentina has undergone substantial political and economic change. Along with international market forces, domestic changes have affected the national agricultural industry in several ways. Nevertheless, the current government of President Macri is implementing policy changes aimed at boosting domestic agriculture as well as increasing exports. Overall, Argentina is a net exporter of oilseeds crops; thus, this article explores the status of grain and oilseeds markets within this country.

Oilseed Markets and Production in Argentina

Soybean production has decreased gradually in Argentina over the last several years from 61 million tons during 2014/15 to 57 million in 2015/16 and an expected total of 55 million for 2016/17. Meanwhile, the amount of land harvested with soybeans has remained relatively unchanged at around 20 million hectares throughout the same time period. Soybean imports, on the other hand, have varied substantially from 35.000 tons in 2014/15 to 600.000 during 2015/16 and an estimated 300.000 tons for 2016/17. In terms of export, Argentina has sold more than 10 million tons of soybeans annually into the international markets during the last several years. Between 45 and 50 million tons of the remaining soybean supply are consumed by the domestic market, while approximately 10 million remains within the Argentine stock supplies. It is important to mention that overall oilseed production takes into account the stock overhang from the previous year.

Similarly, Argentina produces a substantial amount of sunflower seeds. The total sunflower seed production in Argentina for 2014/15 was of 2.8 million tons. The following year, Argentina produced 2.6 million tons of sunflower seeds and the production during 2016/17 is expected to reach 3.3 million tons. During the same timeframe, the amount of land planted and harvested with sunflower seeds has gone from 1.3 million hectares to 1.2 million to 1.7 million hectares in 2016/17. In terms of imports and stock, Argentina’s sunflower seed amounts for both of these categories are negligible. Sunflower seed exports, on the other hand, accounted for 62.000 tons during 2014/15, 305.000 in 2015/16, and are expected to reach 80.000 for the year 2016/17. Therefore, the bulk of sunflower seeds produced in Argentina is consumed domestically.

Finally, during 2014/15 Argentina harvested over 340.000 hectares of peanuts. Afterwards, this amount decreased to approximately 300.000 for 2015/16 and ultimately is expected to account for 360.000 hectares in 2016/17. In terms of peanut production, Argentina’s output in 2014/15 was of 1.2 million tons, which decreased to 930.000 tons during 2015/16. For the 2016/17 year, peanut output in Argentina is expected to return to 1.2 million tons. Meanwhile, Argentina does not import any peanuts and its ending stocks have gone from 590.000 tons in 2014/15 to an expected 250.000 tons during 2016/17. Argentina exports more than half of its peanut production into international markets. For 2014/15, peanut exports totaled 833.000 tons, which then increased to 870.000 tons in 2015/16. Lastly, Argentine peanut exports are expected to reach 900.000 tons during 2016/17. It is important to mention that Argentina exports important amounts of peanuts, soybeans, and sunflower seeds to the European Union.

(Read more about Argentina’s Agricultural Industry and Regional Markets)