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Dec 16, 2020

Argentine Crushers Remain on Strike

Country is largest supplier of soymeal to the world export market

Rain Forecast for Argentina

  • Widespread rainfall is expected over Argentina starting Friday and continuing into the weekend.
  • This event has added significance due to the longer term forecast for drier than normal weather for the following week.
  • Temperatures have been average to above average across the country during the past week.
  • The main production region of central Argentina did not receive enough precipitation to halt the loss of soil moisture.
  • Enough rainfall occurred in other areas to slow soil moisture losses, but are drying also.

FBN’s Take On What It Means: If it verifies, the forecast rain event will be extremely well timed and support crop development in the driest areas for a while longer. The main corn and soybean growing region in Cordoba and Santiago del Estero is short to very short of topsoil moisture, and subsoil moisture is just marginal. This area has struggled with dryness this year, but there has so far been enough timely rainfall to keep potential production losses low. The drier bias following this weekend remains a concern.

FBN

Argentine Crushers Remain on Strike

  • Two unions representing soymeal factory workers remain on strike after recent contract negotiations broke down.
  • The unions are negotiating for wages high enough to keep up with Argentina's high inflation rate.
  • There are no more meetings with export company representatives or Labor Ministry officials scheduled this week.
  • Striking workers are disrupting the main port of Rosario, which accounts for 80% of Argentina’s agricultural exports.
  • Export activity is generally slower into the new year as harvest does not ramp up until March/April.

FBN’s Take On What It Means: Agricultural products are Argentina's main source of export dollars needed to help keep the economy running, and Argentina is the largest supplier of soymeal to the world export market. While it’s a little surprising the government has not stepped in to settle the dispute as it has in the past, timing is not yet critical. Expect intermittent supply disruptions to be supportive as talks are ongoing.

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Kevin McNew

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