Argentine farmers focus on harvesting on sales, despite the increased currency

Boynis Aires (Reuters) – The grain industry in Argentina welcomed the repair of the exchange rate on Monday, although the new measures will not likely translate into immediate sales because the harvest is still behind the schedule.

Late Friday, the Central Bank in Argentina has reduced controls for foreign exchange, a long -awaited measure of billions of dollars to be disbursed by development banks, including the International Monetary Fund.

Raising controls also aims to accelerate agricultural sales, which is a major source of cash from abroad.

Nevertheless, soy and corn sales should remain slow this week, as Easter holidays have cut off short circulation and sources are still not sure of the whereabouts where the bizo coin will settle. The soy bean harvesting also caused heavy rains.

“Producers focus more on the harvest more than the exchange rate, which they already know will be above 1129 peso per dollar,” said analyst Laureena de Angelo, based in Hub Hub Rosario.

With the raising of the Capital Controls on Monday, the pyseo was allowed to float freely within a moving range between 1000 and 1400 peso per dollar. By midday, about 1,190 peso was circulated for each Greenback.

Farmers are now rushing to bring the soy crop amid rain cuts. More precipitation can cause fungi and infection, and hit the return on the harvest.

“We are as much as possible.” “At the present time, all my devices are covered with mud, but we will worry about the fields later.”

President Javier Millie, in an interview on Monday with local radio El Obserdor, prompted farmers to accelerate their sales.

“He told the farmers that if they need to sell, they should do so now,” he said.

Argentina currently imposes taxes on soy exports by 26 %, derived oils and a 24.5 % meal. Millie hinted that the temporary tax collapse, which is scheduled to end at the end of June, will not be extended.

Wait and see

“We will have to wait today and perhaps tomorrow to see where the market is settling,” said Federico Zerboni, president of the corn association. “Today, it is difficult to evaluate new measures without that information.”

De Angelo said that the prices of pills were not available by midday.

“The government has clearly made a positive and involved decision to normalize the foreign exchange market,” said Gustavo Edjuras, head of the export and treatment room. “However, the harvest is delayed, so we don’t expect a quick reaction to the market.”