24hoursworld

February settlement would close below US$700 million (the lowest figure in 18 years)

February settlement would close below US$700 million (the lowest figure in 18 years)

As explained in the Agricultural portfolio, currently the focus of the management is on reaching out with assistance and financial tools to those producers, with special emphasis on small and medium-sized ones, affected by the drought. At the same time, the containment and control measures to prevent the spread of avian flu is another fundamental step that the Government is carrying out.

Meanwhile, sales of the oilseed continue to be practically paralyzed since to date the producer who has stored grain is the one with sufficient financial backing to do so, and the situation is not entirely conducive to advancing with the commercialization of the oilseed. . It is that the high gap between the official dollar and the parallels generate a very important distortion in the sector, also taking into account that farmers receive the official dollar value minus 33% withholdings.

Clearly the current drought that plagues Argentina has become not only a headache for agricultural producers but also for the economy in general. The lower availability of dollars this year is already making itself felt in the macroeconomy and poses a challenging scenario for the coming months of the year.

According to the latest report prepared by the Mediterranean Foundation, a baseline scenario for the soybean oilseed campaign assumes a production of 34.5 million tons in the 2022/23 cycle, imports of 6 million tons, milling of 36 million, soybean grain exports for 1.5 million and final stocks of around 2 million tons. In this scenario, total exports of the main agricultural products and industrial derivatives (grains, oils, flour, beef and dairy products) would be close to US$37.8 billion in 2023, with a drop of US$8.4 billion. compared to the previous year (-18%). The truth is that this projection has become obsolete because last Thursday the Grain Exchange of Buenos Aires led to the soybean harvest of 33.5 million tons, that is, below what was previously estimated. Meanwhile, taking into account lower production, the loss of foreign currency would worsen up to (-u$s10,000 million, -22%). Meanwhile, something already unlikely, if the weather improves the decline in foreign currency income could reach up to US$6,5000, which marks a decline of 14%.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts