Farmers across Argentina are scrambling to plant more soybeans after the country’s %Corn crop has been devastated by an insect plague.
With rain forecasts looking favourable, farmers are racing to plant what could be the largest soybean crop in over a decade across the South American country.
However, an expanded soybean crop from Argentina could lead to global oversupply and push prices lower, warn analysts.
Argentina is already the world’s top exporter of processed soymeal and oil.
The pivot to soybeans comes as a leafhopper insect plague infects an estimated 4.9 million acres of corn fields in the country.
It is now estimated that Argentina’s soybean planting this year could surpass two million hectares, making it the biggest crop since 2012.
Argentine farmers have tried unsuccessfully over the past two years to curb the leafhopper plague that has decimated the country’s corn fields.
%Soybean futures in America are currently trading at $9.40 U.S. per bushel, their lowest level in four years after the United States Department of Agriculture (USDA) forecast a record harvest this autumn.
