WASHINGTON, DC, US — Still reeling from an historic and persistent drought, Argentina will see a significant reduction in soybean production through the end of the 2022-23 marketing year, according to the US Department of Agriculture’s latest World Agriculture Supply and Demand Estimates released on April 11.

The US agency sees production lowered 6 million tonnes from its previous forecast to 27 million due to hot and dry weather conditions. If realized, it would be a 38% decline from last year’s output of 43.9 million tonnes and less than half of the record total of 61 million tonnes in 2014-15.

Because of the reduced output, Argentina is estimated to import a record 8.3 million tonnes of soybeans this year, more than double its total of 3.8 million tonnes a year ago, the report said.

Soybean crush for Argentina is reduced 3.3 million tonnes, to 32 million — the lowest level since 2008-09 — leading to lower product exports. Perennially the world’s leading exporter of soybean meal, Argentina is projected to export 22.4 million tonnes this year, its lowest level in 19 years.

The WASDE report noted that global soybean production in 2022-23 was revised downward by 5.5 million tonnes to 369.6 million. Soybean crush is lowered on reduced supplies and slow pace to date for Argentina, China, Bangladesh, Pakistan and Egypt.

Soybean ending stocks are raised fractionally with higher stocks for China and Brazil that are mostly offset by lower stocks for Argentina.