Foreign media news on July 29:According to Argentina’s Rosario Grain Exchange (BCR), the sown area of soybeans in the core planting belt of Argentina in 2020/22 is very likely to fall to the lowest level in 18 years.
The exchange predicts that the soybean sown area in the core planting area of Argentina in 2020/22 may be reduced to 4.57 million hectares, a decrease of 5%from the 4.82 million hectares sown area in 2020/21. The exchange warned that the final planting scale may be lower, even less than 4.5 million hectares. In most core areas, soybean planting area will be reduced by 10%year-on-year.
The exchange explained the reason for the reduction in the sowing area of soybeans and mentioned that for farmers, soybeans can no longer be as attractive as corn. On the two key issues of gross profit and yield loss, soybeans are at a disadvantage. Under unfavorable weather conditions, soybean yields are unstable; when weather conditions are good, soybean yields are stagnant relative to corn yields.
When asked why farmers did not choose soybeans during a survey of farmers at the exchange, farmers said that soybean planting profits are worse, yields are worse, genetic improvement is slower, and taxation pressure is greater. In contrast, in the previous year, Argentine corn performed well both in terms of yield and price. Due to water shortages, soybean yield is 600 kg per hectare, while corn has reached 6000 kg per hectare. Farmers who grow soybeans lose money, while those who grow corn do not. In addition, in the past 8 to 10 years, soybean yields in Argentina have been stagnant.