30 April 2021
Good weather in Argentina will help speed up the soybean harvest. The pace of harvesting should increase soon as meteorologists expect the next week or two with good weather as per Oilworld.
Unfortunately, it will not help the overall harvest which is plummeting down for the second year in row. According to the Rosario Grain Exchange, the forecast for the 2020/21 soybean crop is 45 million tons. The previous harvest was at the level of 50 million tons, while the 18/19 harvest was at the level of 56 million tons. This translates to a 10% drop from last year and almost 20% in two years. Argentina is the biggest exporter of Soybean oil in the world surpassing the combined export volume of Brazil, US, and EU (Index Mundi). Shortened crop inevitably has led to a shortage not only in the Soybean oil supply, but also in the derivatives such as lecithin. The lecithin demand is up worldwide after last year’s Covid slump, while the supply is not as ample. Large Argentine lecithin exporters are currently sold out, and are now in April offering August shipment contracts. The prices mirroring the overall trend have almost doubled in comparison to the same period of last year. Despite supply chain disruptions, and an overall unpredictability in the market, Lecital has adjusted to this new reality and is currently providing our customers with steady uninterrupted lecithin supply as per signed contracts. It is our current goal to make sure that everyone who has chosen us as their lecithin provider, feels confident that this typically minor ingredient which plays a major role in many applications will be supplied in accordance with agreements by the Lecital team. Please contact us for more details, so that we can make lecithin simple for you.