The surprise generated by the result of the PASO had its correlate in the agricultural producers who are analyzing the proposals of one of the presidential candidates.
The surprise of result of the STEP, and also the rise of the exchange rate they kept the grain market stopped last Monday the 14th, and then the higher exchange rate was transferred to prices. Dante Romano, professor and researcher at the Center for Agribusiness and Food of the Southern University, in a recent report delved into how the impact of the election result in the sector.
“The first impact occurred with the devaluation who reported the Central bank, going from 290 to 350 $/USD. With a market where only corn dollar, since it was made with an exchange rate of 340 against the official 290, the offer was stopped. In soybeans and wheat we already had few businesses. The question was whether new corn businesses should go to 350 or 340 was mandatory. This kept the market paralyzed for one day, where in fact not even estimated slate prices were published,” Romano said.
“Then the panorama clarified negotiation resumedwith soybean prices that accommodated to the devaluation while in corn they did so partially, since with the agricultural dollar an important part was already turning to prices,” he said.
Wheat jumped 2.4% to $166.73, and drove the Chicago market higher
The specialist from the Austral University explained that, in corn, the 350 are only 10 more than the agricultural dollar, and the value did not vary that much. “But the advantage of getting a “plus” for the grain disappeared, and the intention to sell decreased. In any case, with the harvest underway, it was not reduced to zero either. The case of soybeans is different, where very little has been done. The validated industry a significant counter-margin. But since future turbulence is not ruled out, and Milei’s platform points to eliminating the gap, lowering export duties and greater opening, not many reasons to sell”, he deepened.
As he explained, buyers continued interested in buying corn. “But sellers no longer see the business as attractive. The advantage of the corn dollar was the one that pulled. Even so, the program was successful: the objective of projected foreign exchange earnings was reached”, highlighted Romano.
Milei’s proposal, the incentive to retain grains
In another order, Romano recalled that those of the candidate javier milei They aim to unify the exchange rate, and eliminate withholdings. “If this is so, it becomes a strong incentive to retain grainsand neither to sell from the new campaign, unless the values imply very good profitability ”, he analyzes.
In this sense, on Friday, May 24, soybean values appeared around 340 USD/t thanks to the improvement in prices in Chicago, which is beginning to generate interest.
Source: Ambito
