Producers prefer to wait for soybeans to continue growing before selling their stocks. photo files
With the price per ton higher than US $ 620, soybean producers are sitting on the silobolsa. According to reports from the Bloomberg agency, farmers are marketing the bean at the slowest pace in at least a decade.
Until the third week of May, the producers they only sold 18% of the cropBloomberg said, limiting the supply of world markets for soybean oil and meal.
Furthermore, the decision to withhold grains complicates the Central Bank, which depends on soybean exports to increase its dollar reserves.
The decision to delay sales is a traditional tactic to protect against currency devaluations, but high prices this season mean farmers sell even lessjust to cover short term bills and costs.
The price of soy has risen 28% so far this year in the Chicago market. And it is very close to values its all-time high of $ 651 on September 4, 2012.
The soybean complex is expected to achieve record sales of more than $ 24 billion this year.
settlement in dollars
As of May, cereal companies have liquidated exports worth $ 4,231.7 million, which means 33% more than in April and the best month of May Since monthly currency records are kept, the Ciara (Chamber of the Oil Industry) and the Grain Exporters Center (CEC), which account for 48% of Argentina’s exports, reported.
In the first five months of the year, cereal companies entered the country for $ 15,329.6 million.
“The total of currencies entered monthlyand remain under the power of the Central Bankwhich delivers pesos, at the official exchange rate, to exporters in order to be able to carry out operations for the purchase and sale of wheat in the national market “, clarified the entities.
According to Ciara / CEC, “wheat exports have been conditioned by sudden movements in the international market, by the existence of export volumes of regulated corn and wheat from the Ministry of Agriculture, as well as from a huge idle capacity of the soybean crushing industry which continues to work with negative margins even in the middle of the campaign “.
The grain companies explained that most of the industry’s foreign exchange revenue is produced “long before export, an advance that is around 30 days in the case of the export of cereals and up to 90 days in the case of the export of protein oils and flours “.
This anticipation also depends on the weather of the campaign and the grain in question, therefore there are no delays in the settlement of exchange rates.
“In this sector, statistical comparisons between different periods are generally imprecise or imprecise, as exchange rate settlement is heavily influenced by the trade cycle of cereals, which depends on various and changing exogenous factors,” they indicated.
Among these factors, cameras include international price fluctuations, contraction of supply, different volume and protein value of crops, weather conditions, holidays, trade union force measures, regulatory changes, foreign tariff and paratariff barriers and phytosanitary or quality requirements of other countries.
NEITHER
Source: Clarin
