As the U.S. defines the supply it will bring to market, volatility in vegetable oils continues. Brazil requires moisture to begin planting, and local price ratios improve relative to CME.
The Buenos Aires Grain Exchange published the final figures for the 2020/21 corn season. Among the most notable statistics, it indicates that 6.6 million hectares were planted, the largest area in the past 20 seasons. Additionally, total production ended 3.5 MT above the initial production projection, due to an increase of 300,000 hectares’ year-on-year compared to the first planting estimate, as well as excellent yields reported in the province of Córdoba.
Thus, total national production reached 50.5 MT, reflecting a 1.9% year-on-year decline and positioning it as the third-largest production in the past 20 seasons.
The national average yield was 78.6 qt/Ha, down 3 qt/Ha compared to the previous cycle. However, it remains 1.3 qt/Ha above the average of the last 5 seasons.
Despite the production decline, the Buenos Aires Grain Exchange indicated that it will contribute an added value of USD 14.83 billion to the Argentine economy in 2021, 20% above last year’s value, thanks to a recorded increase in crop prices, which exceed the highs of the past eight seasons.
