The soybean market remains paralyzed despite the decree published this Tuesday in the Official Gazette regulating the soybean dollar. “It’s ironed,” they said clarion industry sources.
This Tuesday, the Government published in the Official Gazette resolution 115/2023 which governs the third Export Increase Program (PIE), established by decree 194/2023.
There it was clarified before the uncertainty of the producers that the soybean dollar it will not apply to sales of fertilisers, seeds and other traded inputs in force before the entry into force of the decree. And even those subjects who do not adhere to the program are not reached, both for operations such as payment of field rents, purchase of pellets or meal for animal consumption, processing for balanced foods, or any other type of operation.
But even though the “fine print” is out, the soy market is paralyzed. About 67,000 tons were traded on Monday in total, according to Sio Granos, and 90% were priceless. And to this was added about 4,000 tons with prices fixed by previously stipulated contracts.
This Tuesday, according to the same official monitor, until the end of the edition they had sold just 20,000 tons. The first activity took place in Bahía Blanca, where the company ADM bought at $105,000 per tonne after 1pm. Later, the exporter posted another trade, but for $100,000.
These figures are far from the 1.1 million tons of $2 soybeans that had been traded in the first two days, and even further from the 1.5 million tons of $1 soybeans over the same period.
From the export they still warn about it talks continue con the Government. According to Clarín, they are waiting for a regulation from the Central Bank so that agro-exporters can access the differential exchange rate.
The price offered so far does not appeal to producers, who in many cases will have to face losses due to drought. Two weeks ago, soybean prices were between 75,000 and 85,000 dollars a ton in Rosario, with peaks of 90,000 dollars, at an exchange rate of 210 dollars (Banco Nación). And now, with a dollar at $300, the offer is $100,000 to $105,000.
“By paying $90,000 to $95,000, the industry has a $15-$20 margin. They’re comfortable paying that. If they pay more, the margin goes down,” said one trader consulted by clarion.
Similarly, the Government is still waiting to clarify which economies will be reached by the agricultural dollar (same exchange rate as the soybean, at 300 pesos). As I anticipated Juan José Bahillo, the Minister of Agriculture, entered more than 30 regional economies that had to meet certain requirements: companies must meet the “eligibility” conditions. on the basis of criteria indicated by the Ministry of the Economy to guarantee the offer and the price so that it does not affect the inflation rates.
Meanwhile, the US Department of Agriculture (USDA) report pushed soybean prices higher as Argentina’s soybean crop was cut again by 27 million tons. It is now closer to local private estimates.
Protest
A delegation of leaders and members of the Argentine Agricultural Federation (FAA) arrived this morning in the city of Buenos Aires to personally bring to political decision-makers a list of urgent requests that serve to alleviate the delicate situation of agricultural producers affected by the worst drought in recent decades.
The tour started after 10, when they arrived at the Nation’s Ministry of Agriculture to leave a petition, where they spoke with the head of the portfolio, Juan José Bahillo. Then they went to Congress where they held several meetings with deputies and national senators.
Source: Clarin
