Argentina’s crushing industry is expected to crush a total of 42 million mt of soybean this year, up around 13% compared to the 37 million mt crushed last year.

The expected crushing volumes for this year will be equal to those seen in 2017.

Soybean production is expected to bounce back to reach approximately 54 million mt, up from the 38 million mt seen in the previous cycle, when the country’s main productive regions were hit by a severe drought.

Last year, Argentina’s crushers imported 6.4 million mt of soybeans, versus 2017’s 1.9 million mt import need, the study said, with the lower import volume generating savings of up to $1.47 billion.

Higher crushing volumes would generate around an additional $445 million for the local economy this year from export duties.

Soybean futures ended the Tuesday session with contracts fractionally mixed. Nearby meal futures were down 10 cents/ton, with soy oil 16 points in positive territory.

USDA trimmed their US soybean carryout projection by 5 mbu in the WASDE release this morning, now at 895 mbu. That came from lower imports and higher seed usage.

Their Brazil production estimate was raised by 0.5 MMT to 117 MMT on a higher average yield, as they left Argentine output UNCH @ 55 MMT.

World ending stocks were raised slightly to 107.36 MMT, reflecting the increase to the South American production.