Argentina & South American

Soybean Production

Jesús Silveyra

Soybean

1.000 MTN

SOURCE: USDA.

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

World Soybean Production

Argentina Brazil Paraguay USA Rest Of the World

1.000 MTN

SOURCE: USDA.

Soybean

0

50.000

100.000

150.000

200.000

Soybean World Balance

Exports South America Exports Rest Of the World

Crush South America Crush Rest Of the World

1.000 MTN

SOURCE: USDA.

0

20.000

40.000

60.000

80.000

100.000

120.000

South American Production

Production Argentina Production Brazil Production Paraguay

Soybean

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

World Crushing

Argentina Brazil Paraguay Rest Of the World

63%

37%

49%

51% 43%

57%

1.000 MTN

SOURCE: USDA.

Soybean Crush

Soybean Meal

1.000 MTN

SOURCE: USDA.

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

World Soybean Meal Production

Production Argentina Production Brazil Production Rest of the World

Soybean Meal

1.000 MTN

SOURCE: USDA.

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

World Soybean Meal Exports

Exports Argentina Exports Brazil Exports Rest of the World

-

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

World Oils Production

Oil Palm Oil Rapeseed

Oil Soybean Oil Sunflowerseed

Soybean Oil

1.000 MTN

SOURCE: USDA.

1.000 MTN

SOURCE: USDA.

0%

2%

4%

6%

8%

10%

12%

14%

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

World Soybean Oil Ending Stocks - Stocks/Usage Ratio

Ending Stocks Stock/Usage Ratio

Soybean Oil

Soybean - Argentina

SOURCE: Ministerio de Agroindustria - Argentina.

0

500

1.000

1.500

2.000

2.500

3.000

3.500

0

10.000.000

20.000.000

30.000.000

40.000.000

50.000.000

60.000.000

70.000.000

Kg/H

aT

ons/H

as

Production Area Planted Yield

Soybean - Argentina

SOURCE: SSMA – Ministerio de Agroindustria.

SOYBEAN

Supply & Demand Argentina

Market Year 2017/18** 2016/17* 2015/16 2014/15

(mill. of t)

Beginning Stocks 8,30 9,40 6,80 4,40

Production 53,69 55,00 58,80 61,40

Area (mill of ha.) 16,90 18,00 20,48 19,79

Yield (ton/ha) 3,27 3,06 2,87 3,10

Imports 1,50 0,91 1,30 0,00

Supply 63,50 65,31 66,90 65,80

Crushing 44,50 44,00 43,00 45,10

Exports 7,00 8,50 9,00 11,50

Other Uses 4,50 4,50 5,50 2,40

Demand 56,00 57,00 57,50 59,00

Ending Stocks 7,49 8,30 9,40 6,80

* Estimated

** Projected

1.000 Metric Ton

Supply Chain Soybean

SOURCE: SSMA – Ministerio de Agroindustria.

Total Supply 17/18

63.500

Exports

7.000 (13%)

Crushing

44.500(83%)

Soybean Meal

33.000

(74%)

Exports

30.000

(91%)

Domestic

3.000

(9%)

Soybean Oil

8.360

(19%)

Biodiesel

3.000

(36%)

Exports

1.000

(33%)

Domestic

2.000

(67%)

Domestic

500

(6%)

Exports

4.860

(58%)

Other Uses

4.500 (8%)

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

2010 2011 2012 2013 2014 2015 2016 2017*

Argentine Soybean Exports

China Egipto Irán Tailandia Chile Venezuela Colombia

Exports

Tons - *JAN - Sep

SOURCE: INDEC

Exports

0

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

30.000.000

35.000.000

2010 2011 2012 2013 2014 2015 2016 2017*

Argentine Soybean Meal Exports

Others Vietnam Indonesia

Italia Países Bajos España

Polonia Argelia Malasia

Irán Reino Unido Egipto

Tailandia

Tons - *JAN - Sep

SOURCE: INDEC

Exports

0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

2010 2011 2012 2013 2014 2015 2016 2017*

Argentine Soybean Oil Exports

Others India China

Irán Bangladesh Perú

Venezuela Egipto Corea Republicana

Tons - *JAN - Sep

SOURCE: INDEC

Exports

USA90%

Spain8%

Peru2%

Argentine Biodiesel Exports – Jan/Sep 2017

USA

Spain

Peru

Total 2017

1.082.000 Tn

Tons - *JAN - Sep

SOURCE: INDEC

Growth and Opportunities

Total Crops Planted Harvested

Five Year Average 2011/15 35.900.000 33.170.000

Proyected Area 2026/27 43.180.000 41.021.000

Total Area 159.597.000

Suitable for Agriculture 60.865.000

SOYBEAN 2016/17 2026/27 Variation

Area Harvested 18.000 19.883 10,5%

Yield 3.140 3.320 5,7%

Production 55.000 66.891 21,6%

1000 Tons

SOURCE: INTA – Fund. Producir Conservando – Ministerio de Agrondustria

Reduction of Export taxes from

30% to 18% from January 2018 to

December 2019 (0,5% per month in

24 months).

How is policy going to affect the soy market going

forward? Are there any plans for public investment in

these sectors?

New Seed Law will provide a

better environment for

introduction of new technology.

Argentina’s Spoybean Policy

Markets:

USA imposed a 72% tax.

Peru closed due to a dumping claim

UE open at 10% import duties.

Other market opportunities: India,

other?

Local Legislation:

New rules under consideration

Biodiesel

Biodiesel Market Update

Investments in Argentina sourcing and processing area:

Noble + Nidera by COFCO.

Total of 12% of Argentina’s market share.

ChemChina had recently finished with the last purchase

transaction of Syngenta in 43.000 Millions US Dollars and

Syngenta bought Nidera seeds from COFCO.

China

China Investments in Argentina