Argentina: Oilseeds Market Report 2025 – Production, Trade, and Economic Developments

Market Overview: Production, Challenges, and Exports

Argentina remains one of the world’s leading producers and exporters of oilseeds, particularly soybeans, sunflowers, and peanuts. The 2024/25 season is influenced by climatic fluctuations, economic uncertainties, and political measures aimed at boosting exports.

• Soybean production lowered to 49 million tons due to drought and extreme heat affecting yields in key growing regions.
• Sunflower (4 million tons) and peanut (1.6 million tons) production remain strong, thanks to favorable weather conditions.
• High processing capacity: Soybean crush for 2023/24 increased to 43 million tons, sunflower oil exports reached a 16-year high, and peanut exports surpassed 1 million tons.
• Government reduces export taxes for soybeans, soy products, sunflowers, and peanuts, but farmers are reluctant to sell.

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Soybean Market

• Expected production for 2024/25: 49 million tons.
• Weather conditions: Despite ongoing drought in December and January, rainfall since February has improved soil moisture. However, some regions still face yield losses.
• Soybean crush increases to 43 million tons, driven by high import volumes from Paraguay and reduced export taxes on soybean meal.
• China remains the main buyer of Argentine soybeans, while Paraguay is the primary supplier of imported soybeans for processing.

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Sunflower Market

• Production for 2024/25: 4 million tons.
• Consistently high crush capacity: Expected processing at 3.7 million tons, slightly below the 2022/23 record of 4 million tons.
• Sunflower oil exports rise to 1.2 million tons, the highest level in 16 years.
• Export tax on sunflower oil reduced to 5.5% to encourage sales.

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Peanut Market

• Expected production for 2024/25: 1.6 million tons.
• Planted area reaches a record high, as farmers favor peanuts over other crops.
• Peanut exports exceeded $1 billion in 2024, despite a slight decline in export volume.
• Strong demand from Europe, where Argentine peanuts are valued for their high quality.

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Political and Economic Developments

• Export tax reductions (until June 2025):
  • Soybeans: 26% (previously 33%)
  • Soy products: 24.5% (previously 31%)
  • Sunflowers: 5.5% (previously 7%)
  • Peanuts: Permanent removal of the 15% tax
• Argentine farmers hold back sales: Despite tax relief, sales are delayed as farmers wait for better prices.
• Economic challenges: Rising production costs and high inflation impact profitability.

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Conclusion & Outlook

• Soybean production remains volatile, depending on further weather conditions and political stability.
• Sunflower oil continues to be a strong export sector, with sustained demand and competitive pricing.
• Peanuts gain further importance, driven by international demand and stable prices.
• The government is trying to stimulate exports, but economic uncertainties prevent farmers from selling quickly.

Argentina remains a key player in the global oilseeds market, but political and economic conditions will be crucial in determining the country’s long-term competitiveness.

source: USDA WASDE March 2025