Foreign media June 16 news: Argentina’s Ministry of Agriculture released a report showing that the pace of soybean sales by Argentine farmers continued to lag the same period last year.
As of June 8, Argentine farmers had pre-sold 17.91 million tonnes of 2021/22 soybeans, up 600,000 tonnes from a week earlier and down from 21.77 million tonnes a year earlier.
The Buenos Aires Grain Exchange forecasts Argentina’s soybean production to reach 43.3 million tonnes in 2021/22.
Despite high international prices, Argentine farmers remain reluctant to sell soybeans as a hard currency against a weaker 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.
In addition, Argentine farmers have pre-sold 434,000 tons of 2022/23 soybeans, an increase of 31,000 tons from a week ago and down from 837,000 tons in the same period last year.