Sowing of soybean was conducted on 90% of the area sown and are about 2.25 million hectares of soybean. These fields are located mainly in the Northern regions, where the optimal time of sowing will be completed in 2-3 weeks.

This situation supports the price of soybean meal in Argentina, which is currently trading at the highest level over the last year. In December, a number of factors had a negative impact on the work of recyclers in Argentina, including strikes by workers and decreasing the number of trucks for transportation of goods. The soybean stocks in the refineries in December was 14% below last year's level.

Drought in key producing regions and low stocks at factories contributed to the increase in prices for soybeans and soybean meal. The margin of processors is $ 25./ton that covers all costs. Given the increase in procurement prices for soybeans, farmers intensified its sales.

Some market players expect that this situation will be observed in February. However, a number of market participants believe that farmers are waiting for further price growth and stimulate sales more significantly in February-March to release storage capacity under the new harvest.

Photo: oproduktah.com