Diesel shortage likely to hamper Argentinian soybean, corn harvest: Cecha

The Argentinian soybean and corn farmers are expected to face diesel shortage during the crucial harvest period in the coming weeks, the Confederation of Hydrocarbons Entities (Cecha) said March 29, which is likely to stoke supply concerns.

The recession-hit Argentinian government imports expensive fuel and sells them domestically at rates 32% cheaper, Cecha said. As a result, local oil companies are facing heavy losses and are unwilling to purchase more, it said.

The Argentinian field activities are heavily dependent on diesel-operated agricultural machinery and the fuel shortage has come at a crucial period as the peak season for the country's corn and soybean harvest has just arrived for the 2021-22 marketing year.

The corn harvest in Argentina is already underway and as of March 22, 10.1% of the total planted area of 7.3 million hectares has been covered, the Buenos Aires Grain Exchange said March 23.

Soybean harvest in the South American nation is expected to begin in April. Some volumes of the oilseed have already started reaching the port of Rosario, the country's top export hub, according to the Rosario Grains Exchange.

According to the US Department of Agriculture, the country is expected to produce 53 million mt of corn in 2021-22, up 3% on the year. Soybean output for Argentina is forecast at 43.5 million mt, down 7% on the year, the USDA data showed.

Argentina is the world's second-largest corn exporter and the largest shipper of soybean products.

The 2021-22 marketing year for Argentinian corn runs between February and January, while for soybeans, it is between April and March.

Cecha comprises the owners of 4,500 fuel service stations in Argentina.