Thursday, February 02, 2006

Floods Affect Soybean / Soymeal Production

While the human cost of the recent floods is growing exponentially, leaving thousands of families without readily available access to food or medicine, the economic costs are starting to be felt as well. Carlos Rojas, president of the Asociacion de Productores de Oleaginosas y Trigo (ANAPO) estimates that the region has suffered the loss of 30,000 hectares of soybean crops, with 70,000 hectares more under risk. Damages are expected in the millions of dollars. The most affected sectors include small cooperative producers.

Though Bolivia accounts for a small proportion of the world's soy bean production, it has sought to equal Paraguay (currently at 2 percent of the world's output) in the near future. In the mean time, South American Soybean and Soymeal futures traded in the CBOT have been moving higher in response to weather shifts in Argentina and Brazil and increasing demands from China.

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