Argentina has purchased 600,000 tons of U.S. soybeans, both in new crop and the current marketing year.
This is the largest purchase of U.S. beans by world’s third largest soybean producer in 20 years, according to Reuters.
According to U.S. agriculture officials, soybean exports to Argentina could hit 1 million tons this year, due to drought conditions in the South American country.
“The last time we exported anything to Argentina was 1997 when we exported 500,000 million tons,” said Tony McDonald, market analyst with AgTraderTalk. “Since then, it’s been 500 tons a year.”
The USDA is pegging Argentina’s soybean crop to yield 40 million tons, 8 million more tons than its smallest crop in 2009.
“As far as being built [into the market] now, it’s definitely built in now,” said McDonald. “A lot of those sales are for new crop, and once we see those shipments go out the door, it could impact the market further.”