Argentina sold 1.8 million tons of new beans in the week ended Nov. 2
Foreign media November 9 news: Argentina’s Ministry of Agriculture released a report showing that the soybean sales of Argentine farmers continued to lag the same period last year.
As of November 2, Argentine farmers had pre-sold 1.8 million tonnes of 2022/23 soybeans, up 100,000 tonnes from a week earlier and down from 2.9 million tonnes a year earlier.
The Buenos Aires Grain Exchange forecasts Argentina’s 2022/23 soybean production at 48 million tonnes. The USDA in October projected Argentina’s 2022/23 soybean production at 51 million tons.
As of Nov. 2, Argentine farmers had sold 31.53 million tons of 2021/22 soybeans, up 248,000 tons from a week earlier and down from 33.64 million tons in the same period last year.
For comparison, weekly sales in October were 323,000 tons, 165,000 tons, 55,000 tons and 376,000 tons of soybeans. 1.787 million tons of soybeans were sold in the week ended Sept. 28, as the Argentine government offered farmers a special exchange rate of 200 pesos per dollar in September to encourage faster soybean sales and boost the country’s foreign exchange reserves.
The Buenos Aires Grain Exchange forecasts Argentina’s soybean production to reach 43.3 million tonnes in 2021/22. The U.S. Department of Agriculture projected Argentina’s soybean production at 44 million tons in October.
The Argentine Finance Minister announced on September 4 that from September 5 to 30, the settlement exchange rate for soybean farmers in Argentina to sell soybeans was 200 pesos per US dollar, instead of the official 140 pesos, prompting farmers to sell soybeans actively.
Previously, due to high inflation in Argentina (which may be close to 100% this year) and the continued depreciation of the currency, Argentine farmers were reluctant to sell soybeans, using soybeans as a hard currency against a weakening peso. Because Argentine farmers sell soybeans for peso income, the depreciation of the peso means it is more cost-effective to hold soybeans than to hold the peso.