Exports of Paraguay’s soybean crop are gaining steam, according to shipment data provided by Reuters. Farmers are accelerating sales due to a stronger global market and higher prices.

According to previously unreported figures, the landlocked South American country's oil seed shipments in May reached 1.13 million metric tonnes, an increase of around 34% over the previous month. This is by far the best month so far this year.

Paraguay has surpassed its drought-hit neighbour Argentina to become the world's No. Last year, Paraguay was the No. 3 soy bean exporter. It is predicted that it will harvest a soy bean crop record of more than 10 million tons in 2023/24. Low river levels had slowed down shipments, which were crucial for barges that transport the grain downstream.

Manuel Ferreira is a former finance minister and local consultant. He said, "Now the situation has improved for the Paraguayan farmers who still have grains." The July soy futures have also reached around $325 in Rosario after falling below $280 in Feb.

Cargill Viterra and Bunge are among the major grain exporters in the country.

The national tax revenue directorate of Paraguay shared data with Reuters that showed the country exported nearly 4.6 million tonnes of soybeans until the end May. The sales started off well, but then slowed down in February and march.

Hector Cristaldo is the president of the Paraguayan grain production union. He said that soy farmers were "waiting" for a price increase after they held on to their crops despite the barges being disrupted by the shallower rivers.

Ferreira said that the demand for crushed soyoil, and meal from Argentina was increasing. Argentina is one of the largest global exporters.

Ferreira added that global prices may rise further as the U.S. harvest is consumed in the months to come.

Paraguay’s rivers remain low, due to a severe drought that has affected the water levels in the Pantanal Wetlands in western Brazil. Barges are therefore unable to carry full loads.

Sonia Tomassone is the foreign trade advisor at CAPECO, a Paraguayan Chamber of Oilseed and Cereal Exporters.

Official data shows that the level of the Paraguay River at the important grains port of Villeta was 0.85 meters Monday. This is a significant drop from the 3.5 meters recorded a year earlier, but still better than March, when it was close to zero. Expect more dry weather.

Paraguay needs waterways to move barges down river from Argentina and Uruguay to seaports. The remaining 4,000,000 tons of soy that will be exported this season, must travel mostly along rivers.