Soybean sales in the local market remain at historically high levels after the entry into force last Monday of the Exporter Increase Program which establishes a exchange differential of $200 per dollar for the oil complex, with an average of over one million tons per day.
The Rosario Stock Exchange (BCR), in its daily report on soybean liquidation, confirmed that between Tuesday and today the producers sold 3.1 million tons.
Based on information provided by the SIO-Granos electronic platform, the BCR indicated that the operations included new sales contracts as fixings of operations arranged before September 7.
“The total business with soybeans in the domestic market since the entry into force of the Export Increase Program amounts to 3.1 million tons,” said the stock market entity.
In yesterday’s operations, the main registration items were new sales contracts, with a total volume of 417,600 tons.
In that framework, the Chamber of the Oil Industry and the Cereal Exporters Centers (Ciara-CEC) stated that in the first 72 hours of the program, sales of soybeans amounted to US$ 1,075 million, in line with the goal proposed by the Minister of Economy, Sergio Massa, at the time of announcing the plan last Sunday.
In a press conference given at the Palacio de Hacienda, Massa said that he expected the income of US$1,000 million in the first three days and US$5,000 million throughout September.
These settlements were reflected in the purchases made by the Central Bank during the last days, which made it possible to strengthen reserves.
Market sources indicated that the monetary institution closed today’s session with a positive balance of US$ 426 million, encouraged by the implementation of the so-called “soybean dollar”.
“The volume traded in the soybean dollar segment today was US$623 million,” explained Gustavo Quintana, an analyst at PR Corredores de Cambio.
Since the foreign exchange settlement began, the monetary authority has already purchased around US$ 866 millionwhen adding the US$ 300 million of Tuesday’s session and the US$ 140 million of yesterday.
In regards to the grain prices In the local market, today there was “a marginal decrease in the number of participants bidding for the acquisition of merchandise and a slight cut in the range of delivery possibilities, while downward prices were registered and in local currency,” said the BCR.
for soy with immediate unloading and for the fixing of merchandise, the offers fell until they reached $67,000 per ton, $2,000 below yesterday’s price.
In the Chicago market, the bean today cut the downward streak of the last two days, with the closing of the September contract with a rise of 0.25% (US$ 1.38) to US$ 540.32 a ton, at the same time as that of November it did so by 0.18% (US$0.92) to end the day at US$509.27 a ton.
The fundamentals of the rise lay in opportunity purchases that supported prices after the successive drops that occurred in the previous days.
However, “the pessimistic outlook for the world economy put a ceiling on profits,” said the Rosario Stock Exchange (BCR).
Likewise, it continued to have a downward influence on the market “the abundant sales of soybeans that Argentine producers are making since the differential exchange rate for the settlement of the oilseed came into force and the little to no news of Chinese demand” , raised grain broker Granar.
Oil accompanied the positive closure of beans, with a rise of 1.66% (US$ 24.91) to US$ 1,518.08 per ton, while flour fell 1.9% (US$ 9.15) to position itself at US$ 471.56 per ton.
