After clarifying that “all intervention measures generate alterations in the process of discovering prices” and that “it is not easy to decree incentives in the middle of the campaign without producing distorting effects between products and sectors”, the Federation of Stockpilers stressed that “it is has produced an asymmetrical behavior between international and domestic prices that affects the situation of the domestic market”.
The collectors argue that “although the theoretical capacity of payments in the FAS export and industry market is -by definition- a theoretical exercise, there is no doubt that there are explainable ranges of alteration. Today these ranges have been perforated, setting a price for producers of 30/40 per ton below parity,” they explain from the Federation.
For collectors, “the short duration of this stimulus (20 business days) has caused a “gate 12” effect where enormous supply pressure is being produced while demand adjusts by price. There are twenty days that are reduced even more, because by September 30 what was sold must be delivered and settled”.
“It is necessary to normalize this situation and restore price signals in order to minimize distortions and avoid imbalances in efforts,” the stockpilers conclude in their letter to Minister Massa.
In this framework, as detailed by the Rosario Stock Exchange, as soon as the measure began to take effect, the ton of soy was traded in the local market for up to $72,000, but then its price was losing ground to $65,000. This scenario then means, despite the improvement in price, a direct loss for the producer.
Beyond this particular situation, at the moment, the Government anticipates that it is not in the folder to extend the measure that was implemented exceptionally only during September. The plan is then to strengthen the reserves as much as possible during the coming weeks and also manage the dollars that arrive from international organizations that Minister Massa is negotiating.
The closed message in the Government towards the producers is that they take advantage of selling as much as possible during September since the hand of the exchange rate of $200 in any way results in an equation of zero withholdings for the producer.
Source: Ambito
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