The Government trusts that soybean producers will settle in September more than US$ 5,000 million within the framework of the transitory implementation of a special exchange rate of $200 per dollar for export.
“The US$ 5,000 million is a floor, we believe that this amount is going to be exceeded” because the producers “took it very well” to the program, said official sources when taking stock of the first two days of implementation of the measure.
After noting that this scheme “ends on September 30”, the sources expressed their confidence that it “encourages producers to sell”, and highlighted that in these first two days there was a “higher than expected” percentage.
One million tons traded for US$400 million on Monday, on the first day of the programwhich meant “the highest turnover since March 2017”, added a figure of over 700 thousand tons.
“This volume of daily operations has not been seen since February 10, 2017, more than five and a half years ago,” highlighted the Rosario Stock Exchange (BCR) through its grain market report.
“There was a strong increase in commercial activity, with the participation of all the traditional players and upward offers that accompanied the announcement of the Program”, specified the BCR.
On Monday, the Export Increase Program came into force, through which an exchange rate of $200 per dollar is applied to soybean exports with the aim of accumulating foreign currency and reinforcing the reserves of the Central Bank.
The measure was ordered “in an extraordinary and transitory manner” and will last until September 30, a period during which the main export complexes committed to selling soybeans and derived products for at least US$5,000 million.
On the other hand, the sources clarified that “the commitment of cereals and the will of the Government is to maintain the price around $70,000 a ton”, and attributed the slight drop this Tuesday to normal “fluctuations” in the market.
“This daily trading volume has not been seen since February 10, 2017, more than five and a half years ago”Rosario Stock Exchange Report
“We are going to work so that there is no dominant position and that producers are harmed,” the sources clarified, after which they assured that “there should be no problems, only a minor impact on other sectors.”
Likewise, They advanced that this Wednesday the regulation of the decree would come out to clarify some aspects.
The price of soybeans with immediate delivery and for merchandise fixings was negotiated at $69,000 per ton in the BCR on the second day of validity of the differential exchange rate for the soybean complex of $200 per dollar.
In the physical market, the price of beans fell $3,500 compared to Monday, when it stood at $72,500 a ton, although – the sources indicated – operations for $72,000 were also recorded.
The BCR pointed out that “commercial activity in the soybean market was sustained in the domestic market” and that it had “a smaller number of open positions although with a good presence of active buyers.”
In terms of prices, the stock market entity said that “the offers by the industrial sector tended to fall in relation to the previous business round.”
According to market sources told Télam, the decline was due to two reasons: the abundant supply of local merchandise and the declines recorded in the Chicago market.
“A lot of local supply appeared,” agreed the sources, who also stressed that prices “continue at good levels” and that “producers have to take advantage of this window that has opened to try to improve their economic margins.”
Although the current closing was below Monday’s values, compared to Friday it shows an increase of almost $19,000 pesos.
Likewise, Chicago ended the day lower, with a decrease in the September contract of 1.35% (US$ 7.53) to US$ 547.48 a ton, while the November contract lost 1.53% (US$ 7.99) to conclude the day at US$ 513.95 per ton.
This drop stemmed from Argentina’s decision to offer farmers a better exchange rate for soybeans, which “threatened to increase export competition at a time when US offers tend to dominate the market, which tended to prop up falls,” explained the BCR.
