In the last year, in the world, there have been registered record harvests in the three crops covered in this report: soybean, wheat y corn; and that has been mainly driven by the excellent weather conditions.

In parallel, the demand -direct or indirect- of these, whether for human consumption or for other productive activities, such as cattle raising or obtaining biofuels; They are not enough to absorb the abundant flow of production recorded.

The combination of these two phenomena has configured a scenario where one of the most famous paradoxes of economics is fulfilled: the paradox of abundant harvest.

The surpluses of this campaign, which are incorporated into the already existing – and abundant – stocks of previous productions, have impacted on a fall in the international prices of each crop, compromising the profitability of the sector.

Likewise, there are other factors that pull in the same direction and, therefore, reinforce the fall in prices received by local producers.

La monetary politics exercised by the central banks of the main economies of the world, has determined that the dollar emerge stronger with respect to the other currencies.

To this context must be added the debt buyback program who has launched the European Union, and which began in March of this year, not without tensions within the countries of the euro zone.

On case of Argentina, the increase in wheat, corn and soybean production; It is explained only by a improvement in performance, given that the planted area would have remained relatively constant in this campaign.

The combined consequences of the factors that affect our economy are leading to a loss of profitability of the agricultural producer.

Although the January 2014 devaluation provided some relief, its effect has already been liquefied due to the increase in internal costs.

In this way, the loss of competitiveness and lower yields have led to negative margins - with average yields - for corn and wheat producers in leased fields.

Given the significant decrease in the internal price, the profitability in the case of this last crop can become negative even in plantations with their own fields.

The repercussions of this situation are also being felt Upstream, with diverse effects on the value chain of the Santa Fe agroindustry. On the one hand, the milling industry will benefit from the high availability of soybeans.

It will boost activity during 2015, and, given the stocks accumulated in recent years, next year would also present a positive scenario, even in the face of a possible fall in the harvest.

Unfortunately, the same does not apply to biodiesel producers in the province, who will continue to be greatly affected by the collapse in international crude oil prices.

In the current scenario, with oil prices depressed, a substitution effect occurs, where it is more economical to use diesel than to establish some cut with biodiesel.

In this way, only those countries in which, as a rule, they must represent a minimum percentage of gasoline or diesel oil will resort to biofuels.