Argentina the second leading exporter of soybeans to Colombia

The geopolitical crisis in Ukraine is having an impact on countries in the region. The Colombian government is no exception and is trying to avoid double-digit inflation. Countries like Argentina have taken measures through their economic cabinet to deal with this situation. It is known that Argentina halted exports of soybean oil and meal, which could have an effect on the withholdings of these products.

These measures are intended to increase the taxation on soybean and flour exports from 31% to 33%, a figure that, according to analysts’ estimates, could raise an additional US$400 million.

Despite the fact that governments have exerted efforts so Colombia does not depend on the importation of these products, a large volume from abroad is still required. Last year, according to figures from the National Federation of Cereal, Legume and Soybean Growers (Fenalce), more than two million tons were imported.

Argentina is the second leading exporter of soybeans and its derivatives to Colombia, with a total of 385,222 tons or 16.7% of the total figure, being surpassed only by the US, which exports more than 1.5 million tons or 69%. After these two countries comes Bolivia, with 318,372 tons (13.81%), Brazil with 8,034 tons (0.35%), and others, such as Chile, Ecuador, Peru and China.

“Soybean prices ended the round with slight falls in Chicago, pressured by the drop in oil prices, with the May position losing US$45.86, amidst the fall in the value of oil exceeding 8%. During a good part of the round, it remained positive due to the rise in the value of flour, which increased at the close of the export registry in Argentina, in anticipation of a possible increase in export duties,” Fenalce said.