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Market complacent to Argentina crop struggles

An analyst suggests the market is not fully comprehending crop losses in Argentina.

Michael Cordonnier is president of Soybean and Corn Advisor in Hinsdale, Illinois and says the numbers coming out of the country are jaw-dropping.

“This will be the smallest crop in Argentina in like 25 years.”

Argentina is the largest soybean meal and oil exporter in the world and he tells Brownfield Argentine soy crushers can’t find enough soybeans.

“They’re already importing soybeans from Brazil, they’ll be importing more. The crushers have already cancelled or bought back some of their meal contracts and oil contracts, and the farmers in Argentina are going to be very slow sellers.”

Cordonnier says soybean meal will be in very high demand globally and calls the market “complacent” as the situation worsens in Argentina.