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Home Investing in Forex Storms Threaten Argentina’s Soy Harvest

Storms Threaten Argentina’s Soy Harvest

by Barbara

In Argentina’s Pampas plains, soybean farmers are working against the clock. Weeks of strong rainfall have delayed the country’s crucial soy harvest, and more storms are on the horizon. For farmers like Cristian Giacobone, every dry hour matters. Argentina relies heavily on soybean exports to support its struggling economy, but this year’s harvest is running at its slowest pace in over a decade.

Harvest Delays Threaten Crop Quality

Cristian Giacobone runs a 60-hectare (148-acre) soybean farm in San Andrés de Giles, around 100 kilometers (62 miles) west of Buenos Aires. Like many farmers in the region, his harvest has been set back by unusually persistent rainfall since February.

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“We have a very small harvest window,” Giacobone said. “Rainfall has reached almost 580 millimeters (22.83 inches). That’s the main reason we’re behind—both the fields and the access roads are soaked.”

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Because of the wet conditions, many farmers are harvesting in mud, risking long-term damage to the soil. This compaction makes future planting more difficult, but the alternative—losing the crop—is worse.

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Argentina’s Economy Depends on Soy Exports

Argentina is the world’s top exporter of soy oil and soy meal. The Buenos Aires Grains Exchange estimates that this season’s soybean production will reach about 50 million metric tons.

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For the Argentine economy, which is grappling with inflation and heavy debt, soy exports are a key source of foreign currency. The government depends on these “soy dollars” to boost its international reserves.

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However, the harvest delays are already showing economic consequences. As of May 7, only 28.7% of this season’s soybeans had been sold. That’s far below the 10-year average of 36.1%, making it the slowest selling pace in 11 years.

Dry Weather Brings a Brief Opportunity

Farmers had a short break in the weather starting Saturday, allowing them to resume harvesting after days of rain. By Thursday, about 65% of the planted soybean area had been harvested, according to the Buenos Aires Grains Exchange. Still, that’s five percentage points behind the five-year average.

To make up for lost time, farmers are now working longer hours. Giacobone explained that instead of waiting for grain moisture levels to drop later in the day—standard practice to save on drying costs—farmers are starting early and pushing through longer workdays.

“The decision now is to get out early, even if the grains are wet and the costs are higher,” he said.

El Niño Brings More Rain Ahead

Unfortunately, the clear skies won’t last. Meteorologists expect more rain in the coming days, driven by the El Niño weather pattern. This phenomenon often brings higher than average rainfall to Argentina, making farming more unpredictable.

Eduardo Sierra, a climate specialist at the Buenos Aires Grains Exchange, warned that a new storm front is approaching.

“We see a front coming that could bring very strong storms,” Sierra said. “The rain could continue until Sunday.”

Summary

Argentina’s soybean farmers are in a race against time as they try to harvest their crops before the next wave of storms hits. The country’s economy depends on the success of the soy season, but extreme weather caused by El Niño has thrown the schedule off track. While a brief dry spell has allowed some progress, the work is far from over—and the skies are far from clear.

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