The inflow of foreign currency for the month of May is a reflection of a market strongly affected by the extreme drought that drastically reduced the production of the coarse crop (corn and soybean).
After the completion of the Soybean Dollar 3the Chamber of the Oil Industry of the Argentine Republic (CIARA) and the Cereal Exporters Center (CEC), entities that represent 48% of Argentine exports, announced today that during the last month of April the companies in the sector settled the sum of US$4,212 million dollars; representing a decrease of 0.45% in relation to the same month of the year 2022, and 78% higher than in the month of April 2023. But, Compared the first 5 months with last year, the grain-oilseed sector lost foreign sales by 38%.
The foreign exchange income for the month of May is a reflection of a market strongly affected by the extreme drought that drastically reduced the production of the coarse crop (corn and soybeans), said the official statement. In turn, the regime established under Decree 194/23 expired on May 31 and caused a significantly higher supply of soybeans, sunflowers, sorghum and barley than in previous months.
soybean dollar.jpg
AFP
The monthly income of foreign currency, transformed into pesos, is the mechanism that allows us to continue buying grain from producers at the best possible price. Foreign currency settlement is fundamentally related to the purchase of grains that will later be exported, either in their same state or as processed products, after industrial transformation. Most of the foreign exchange income in this sector is produced well in advance of export, an anticipation that is around 30 days in the case of the export of grains and reaches up to 90 days in the case of the export of oils and protein meals. This anticipation also depends on the time of the campaign and the grain in question, so there are no delays in the settlement of foreign exchange.
The oilseed-cereal complex
The oilseed-cereal complex, including biodiesel and its derivatives, contributed 48% of total Argentine exports last year, according to INDEC data. The country’s main export product is soybean meal (14.2% of the total), which is an industrialized by-product generated by this agro-industrial complex, which currently has a high idle capacity of close to 50%. The second most exported product last year, according to INDEC, was corn (11%) and the third was soybean oil (6.9%).
Source: Ambito
