From “agro dollar”, the commercialization of corn was the highest for July in the last seven years. A reality that was reflected in a higher currency liquidation and that left the program, despite the slowdown in operations this week, very close to reaching the goal of US$2,000 million set by the Government.
Facing what may happen in the coming days, analysts warn of some factors that may influence the producer’s decision to sell: the uncertainty that is usually generated prior to an election, prices and the dollar price.
In this scenario, a report from the Rosario Stock Exchange highlighted that “the commercialization of corn in the domestic market progresses, as the harvest progresses and the producer tries to take advantage of the window of opportunity.” “Product of the price incentive generated by the ‘Agro Dollar’, we have the highest month of July in corn purchases in the domestic market in at least seven years. 54% of the month’s sales occurred after the implementation of the PIE (Export Increase Program), that is, in just 4 business days”the study noted.
“The corn market captures the attention of operators in the local marketwith all the large exporting houses active in offering conditions to buy merchandise, practically all with deliveries until the end of August, the expiration date of the Program”, they added from the entity.
Since the inclusion of corn in the agricultural dollar (July 25), USD 1,877 million were liquidated, which would represent 94% of the objective of USD 2,000 million set by the Government. In any case, although it is discounted that this goal will be reached, during this week there was a slowdown in the rate of income: this Wednesday, by case, US$46.4 million were liquidatedthe lowest figure since corn was incorporated into the program.
Facing what may happen in the future, Dante Romano, a professor at the Center for Agribusiness and Food at the Austral University, explained to Ámbito: “This week it was operating, in terms of volume, at 50% of what it was the first week. But we are above 1.6 million tons. The reality is that it is close to reaching the US$2,000 million that the Government expected in foreign currency income, which happens that since the PASO are close, we understand that there will be many producers that -like the businesses that close now they are going to be charging next week- they are going to wait and see what happens with the elections. Unless very tempting prices appear”.
Along the same lines, from the export sector they highlighted to this medium that “the flow of corn sales started strong and these days began to decline” and they explain that a greater settlement in the coming days will depend on the level of purchases that can be made.
In this sense, Romano pointed out: “An interesting fact is that on Monday, when Chicago had a very strong drop, the exporters started with a price below $60,000 a ton and that day there were practically no operations. Later, when they returned to values above that mark, more volume began to come out.
Another factor to take into account is the price of the dollar. “It must be borne in mind that the initial advantage, of $340 against an exchange rate that was in the area of $260, gave an interesting result.; now that the official exchange rate is closer to $290, that ‘prize’ that was initially starting to wear out”, pointed out Romano, who concluded: “That is why many producers are waiting to see what happens after the elections, fearing that if the result were a negative surprise for the ruling party, there could be some strong movement out there. If everything turns out as seen in the polls, we should resume operations normally.”
Source: Ambito
