High prices attracting farmers to grow soybeans and late-season rains have resulted in a prediction of a record soybean crop for Argentina. According to the U.S. Department of Agriculture bureau in Buenos Aires, Argentina will harvest 57.5 million tons of soybeans in 2013/14 – 4.0 million tons higher than the department estimated. The previous record of 54.5 million tons was set in 2009/10. Both the International Grains Council and Oil World have adjusted their forecasts to approximately 55 million tons. There is a unanimous agreement across the industry that area planted is to exceed 20 million hectares with some estimating area planted in soybeans to exceed 21 million hectares. This season soybean prices are falling at a slower rate than corn prices, and mixed with a lower cost of production many farmers are switching to growing soybeans. Argentina is the world’s third largest soybean producer behind the U.S. and Brazil however this bumper crop is not expected to affect Argentina’s soybean exports which should remain at approximately 10 million tons.
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