As expected, the first day of commissioning the third Export enhancement programbetter known as sour dollaroffering $300 value as currency for industry operations, the soybean market was on pause: lots of rumours, little business.
Offers to purchase soybeans were scarce. THE the exporting companies, the buyers, argue they won’t provide prices because they want to know the fine print, the regulation of Decree 194 which formalized the agricultural dollar. “There are more doubts than certainties,” they underline. Is that the standard leaves many unanswered questions that impact the margins of your business.
According to what they say, they must know the terms and proportions of subscriptions, if it is only a matter of purchases; whether legacy contracts and forward contracts to be fixed are included; what products are included; how long does it take to get affidavits, how long do they last, what percentage of purchases do they need to get, and for what products; how does the return of the tax credit affect, among other things that they determine the grinding margin and must define before saying what price they can pay.
During this Monday there were offers of $100,000, $105,000, $108,000 and up to $110,000 per ton of soybeans. According to industry sources, Molinos Agro today offered $105,000 with up to 20% green beans and $107,000 on contract; CHS walked out with $105,000 this morning for Necochea; broker Maroun offered $105,000 to Bahía Blanca; FyO spent $100,000 on availables; AGD denounced “no quotation”, the same legend that the Rosario Stock Exchange exposed in the afternoon, when it indicated that no purchase offers opened by the lawsuit were registered.
Ten days ago, buyers were paying between $75,000 and $85,000 a ton for soybeans in Rosario. It should be noted that in most cases producers receive a very different value than slate.
It is worth saying that although agro-exporters have stopped, they also need to buy soybeans because idle capacity of processing plants is at a very high level.
On the other hand, producers have little stock to sell after the drought that left very low yields and the previous two soybean dollar editions, so they expect good prices that justify delivering those grains and allow them to make up the difference. . However, they need money since many are in debt and in a few weeks they will have to face the costs of sowing winter crops.
In this sentence, soybean operations were virtually paralyzed. Exporters estimate that the interlude will last this week and that the details of the measure will only be known next week in order to have an accurate analysis of its impact. “Until all the rules are published, it will not be possible to operate“, they argue.
According to sources from the Ministry of Agricultural Policies, the regulation of the decree and the disciplinary of the expected productions will be published between 24 and 48 hours. The national government has a great need to increase the reserves of the Central Bank and prevent the outflow of dollars, which is, finally, the goal of the third edition of the agricultural dollar.
Source: Clarin
