…which, despite the less trading day due to Monday’s holiday in the US (which governs the main world agricultural markets) the last days shook the agricultural activity from different angles. From political unease, to uncertainties about a new economic team, passing through the abrupt local jumps in the dollar, the not too clear lack of gasoil that is maintained (but that in many cases appears when overprices are paid), in addition to the insecurity about the supply of other key inputs for the activity such as tires, wires, fertilizers, minerals, and even some molecules for medicines and food from the livestock, and certain agrochemicals, all in the middle of the campaign of sowing of the cycle 22/23. If to this is added the presentation of a proposal that would modify the trade in grains, and that could immobilize the activity, and the cease marketing of the entities of countryside which remains for Wednesday the 13th, it is clear that the outlook is more than complicated. Of course, in the middle there was already an adjustment in freight rates (although diesel still does not appear), and the damages due to the dry season and the cold wave continue to add up. In fact, between 800,000 and one million hectares are already counted which would remain unsown in wheat (which would surely later become first-class soybeans), and efforts are added to ensure the supply of fertilizers, many of which (matchsticks, potassium, sulfur, etc.) have imported active ingredients since they are not produced locally. The issue is fundamental because the yield differential is very significant with or without the use of fertilizers, which becomes more relevant when the weather conditions have not been too good so far, and a strong growth in the planting area is not expected, which is barely could equal that of the previous campaign. So, equal or less area + less yield = less production. Added to this is the delay in the renewal of fumigation planes (also due to the limitations of access to dollars), essential when it comes to pest and weed control.
Source: Ambito
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