Uruguay sounds drought warnings over 20/21 soybean planting

The lack of rain in some regions of north Uruguay could put at risk the forecast expansion in the country’s soybean planted...

The lack of rain in some regions of north Uruguay could put at risk the forecast expansion in the country’s soybean planted area for the 2020/21 crop cycle, an official at Uruguay’s agriculture ministry has told Agricensus Friday.

The official said that initial forecasts had stipulated an increase in the soybean area of approximately 10% compared with the 1 million ha planted in the previous cycle.

“Farmers in Uruguay are expected to plant more soybean this incoming crop cycle mainly due to the good prices of soybean,” he said.

However, the lack of water in certain regions brings uncertainties about the potential expansion of the soybean surface in Uruguay.

“There are drought conditions in most of the country’s agricultural regions. However, the scenario is more critical in the northern region, as farmers need to plant soybean there sooner compared to other regions,” the official added.

“In the south of the country, farmers still have time to plant soybean but more rains are needed to improve soil conditions. There have been some recent rains in the country but these were not enough to improve the scenario,” he said, adding that it was still too early to provide initial soybean production estimates for the 2020/21 cycle.

Uruguay has exported a total of 1.96 million mt of soybeans in the first nine months of the year, with 63% heading to China, compared with 2.27 million mt in the same period of 2019, when 72% headed to China, according to the local export promotion agency Uruguay XXI.

Uruguay’s 2019/20 soybean crop reached 2 million mt, well behind the initial estimate of 3 million mt, according to government data, with the lower production down to another severe drought that hit several growing regions in the south of the country.

For the 2020/21 crop season, the USDA expects total soybean production to reach 2.09 million mt.

What to read next
The publication of the affected prices was delayed for 50 minutes. The following indices were published late: MB-MNO-0001 Manganese ore high grade index, cif Tianjin, $ per dmtu MB-MNO-0002 Manganese ore semi carbonate index, 36.5% Mn, fob Port Elizabeth, $/dmtu MB-MNO-0003 Manganese ore semi carbonate index, 36.5% Mn, cif Tianjin, $/dmtu These prices are a part of the […]
The purpose of this review is to ensure that the index continues to accurately reflect prevailing market conditions. We welcome feedback from industry participants on potential amendments to the base specification. This consultation, which is open until August 9, 2025 seeks to ensure that our methodologies continue to reflect the physical market under indexation, in […]
Despite the current headwinds, strategic partnerships and continued investment in the right areas, coupled with the underlying strong long-term demand fundamentals, will pave the way for success for lithium producers, according to the participants of the executive panel during the Fastmarkets Lithium Supply and Battery Raw Materials Conference, which took place from June 23-26 in Las Vegas, Nevada.
The US and Europe must adopt long-term, consistent policies and should learn lessons from China, according to lithium industry experts speaking at Fastmarkets’ Lithium Supply and Battery Raw Materials Conference in Las Vegas, US, over June 22-25.
This consultation was done as an adhoc methodology review process, aiming to better reflect the physical market under indexation, considering its reduced liquidity linked to the combination of seasonal demand patterns and the implementation of cross-border import tariffs between the US and China. No feedback was received during the consultation period and therefore Fastmarkets will […]
Fastmarkets has corrected the rationale for its MB-CO-0021 cobalt hydroxide payable indicator, min 30% Co, cif China, % payable of Fastmarkets’ standard-grade cobalt price (low-end), which was published incorrectly on Wednesday July 2 due to a reporter error.