BUENOS AIRES, ARGENTINA — Soybean production in Argentina is expected to rebound from a 30% drop in 2017-18 due to drought, according to a May 30 Global Agricultural Information Network report from the U.S. Department of Agriculture.

The USDA forecasts 2018-19 planted area of 19 million hectares, up 3% from the previous year, and production of 57.5 million tonnes.

Soybean crush is forecast at 43 million tonnes, an increase of 3% compared with 2017-18.

“This increase is attributed to greater supplies as production is expected to recover to average historical levels,” the USDA said. “Argentina has a soybean crush capacity of 67 million tonnes annually with over 75% of Argentine soybean supplies destined for crush.”

Soybean exports are forecast to rebound to 7.3 million tonnes in 2018-19 after dropping to 3.5 million tonnes a year ago, the USDA said.

The USDA also noted that Argentina’s 2017-18 soybean ending stocks are forecast to fall 40% to 10.9 million tonnes.

“Expectations are that 2017-18 beginning stocks will be drawn down by 7.6 million tonnes to fulfill export and crush commitments,” the USDA said. “This represents the highest drawdown of soybean stocks in Argentina’s history.”