the future of sorghum could change due to strong demand from China and rising FOB prices
The 2019/20 production of sorghum is estimated at 1.85 Mt and exports at 650,000 tons, being a maximum since 2015. With anticipated foreign sales of the next campaign at a historical record, the impact of the opening of the Chinese market since 2019 stands out.
The purchases of Argentine sorghum by China are a novelty since in the last decade it has not been a frequent destination for our country. 359,000 tons have been shipped to the Asian giant until August 2020, more than doubling the total shipments during 2019 (144,000 tons).
The 46.6% of export earnings since April came from corn and soybeans.
Due to the contributions of record corn exports and shipments of beans, flour and soybean oil, from April to August only the soybean and corn complexes accounted for just under 1 of every 2 dollars entered by exports.
Corn exports for the month of August constituted a monthly record of shipments, reaching 4.58 million tons. With the August data, it is confirmed that so far in the 2019/20 season, corn shipments reach a historical record of 25.36 million tons, exceeding the 22.51 Mt of the same period of the previous season. This generated foreign exchange for US $ 3,447 million
Reduction of export duties on soya beans and by-products.
On Thursday October 1st, the Minister of Economy announced, among other economic measures, a modification in the export duties scheme on the soybean complex.
The new taxes of soy beans will be reduced from 33 to 30% in October, 31.5% in November and 32% in December, returning to 33% for the month of January onwards;
By-products will have of 28% in October, rising to 29.5% in November, 30% in December and 31% from January onwards.
For soybean oil, the new tax is one percentage point below crude oil, while biodiesel, in principle, corresponds to an aliquot of 26% in October, which will converge to 29% in 2021.