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Due to the drought, the country registered the worst dollar income in 18 years

Due to the drought, the country registered the worst dollar income in 18 years

According to the agroindustrial report of CIARA-SECthe Chamber that brings together the Oil Industry and Cereal exporters, Argentina reported the worst dollar income since 2018 last year. In the accumulated January-December, the foreign exchange income was US$19,742, a decrease of US$20,696, 51% compared to the same period in 2022 when the record income of US$40,438 was reached.

In January there was a recovery of around US$1,522 million “due to the agricultural dollar and the macroeconomic movements of the new government that impact the sales decisions of producers and the greater supply of grains,” they explained.

  • LARGE FALL IN FORWARD WHEAT SALES AND FIXINGS: due to the lack of certainty in the market generated by Decree 28/2023.

  • RECORD GRINDING OF SUNFLOWER IN THE PERIOD JAN-DEC, CALENDAR YEAR: The FIRST RECORD of the decade is confirmed and sustained. The accumulated grinding in the period Jan-Dec 2023 reached a record of 3,922 million tons, the highest value in the last decade. The second largest grinding was recorded in 2022 with 3,383 million tons.

  • ALMOST NO CHANGES IN THE “UCI” INDEX (USE OF INSTALLED CAPACITY). The “UCI” Index (Use Capacity Utilization, Soybean Grinding) remains at the same level as November, at 32.3%, having few changes in the grinding volume, very similar in the last three months.

  • THE IDLE CAPACITY OF THE INDUSTRY IN FACE OF THE POTENTIAL “PLANT CLOSURE DUE TO LACK OF AVAILABLE SOYBEANS”: has not been able to be reduced significantly, and remains at 67.7%. There remains a high risk that oil companies will have to close their plants for maintenance, for a longer period than normal, early vacations and a sharp drop in industrial activity. Direct impact on the lower foreign exchange income during the first quarter Jan-Feb-Mar 2024.

  • STRONG INCREASE IN THE INCOME OF SOYBEAN AND CORN TRUCKS DURING JANUARY: encouraged by the continuity in the validity of the Agro Dollar (80% MULC – 20% CCL), producers sold a good volume of Corn (127% increase compared to the previous month), just over 1,000,000 tons, versus 486,000 tons shipped the month former. However, the available market suffers from the sharp drop in inventories.
  • Capture.PNG

    In the accumulated January-December, the foreign exchange income was US$19,742, a decrease of US$20,696, 51% compared to the same period in 2022.

    Source: Ambito

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