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Argentina's Soybean Exports May Fall 25% This Season

Argentina’s soybean exports could fall by 25% this season after unexpectedly high rainfall caused flooding and damage to crops.

Flooding in the month of April across the country’s key production regions led the U.S. Department of Agriculture (USDA) bureau to cut its soybean harvest estimate to 56.5 million tons for the year, however it did not adjust its forecast for soybean exports, which remains at 11.4 million tons, according to AgWeek.

Industry watchers disagree, however, after flooding has caused the loss of six million tons of soybeans and damaged additional acreage, making the soybeans unfit for export.

Gustavo Lopez, director of the consultancy, Agritrend, told AgWeek that he expected exports to be between 8.5 million tons and 9 million tons, down from 11.5 million tons for the 2014/15 season, with soybean processing for oil and flour exports totaling between 42 and 43 million tons – down from 43.5 million tons last year.

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