This fall, as explained by CIARA-CEC, was due to a strong liquidation in the fourth month of 2023 thanks to the soybean dollar.
Agricultural companies settled US$19.10 million in Aprilwhich represented a decrease of 21.5% compared to the same month of 2023which due to soybean dollar had a larger liquidation, as reported this Wednesday by the Chamber of the Oil Industry (CIARA) and the Cereal Exporters Center (CEC)entities that represent 48% of national exports.
However, compared to the previous month, the increase in settlement was 27% and in the quarterly cumulative There was also observed a 23% improvement compared to 2023.
“The foreign exchange income for the month of April is the result of the exporter dollar effective from December 2023, from the meager international prices and the impact of the climate on the rhythm of corn and soybean harvest. Grain exports continue to work with high levels of idle capacity, as well as the oil industry, suffering permanent negative margins; something that grew this month due to the national strike of the oil unions that paralyzed the activity for reasons beyond the control of the industry,” explains the report from CIARA-CEC.
Furthermore, CIARA-CEC explained that the Foreign exchange settlement is fundamentally related to the purchase of grains which will then be exported, either in their same state or as processed products, after industrial transformation.
“Most of the foreign exchange income in this sector occurs well in advance of export.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 flours,” they added.
Oilseed and cereal exports
The oilseed-cereal complex, including biodiesel and its derivatives, contributed in 2023, 50.1% of Argentina’s total exportsaccording to data from National Institute of Statistics and Censuses (INDEC).
The country’s main export product is Soybean flour (12% of the total), which is an industrialized by-product generated by this agro-industrial complex, which It currently has a high idle capacity close to 70%. The second most exported product last year, according to INDEC, was corn (11%) and the third was soy oil (6.9%).
Source: Ambito
