Foreign media August 11 news: Argentina’s Ministry of Agriculture released a report showing that the pace of soybean sales of Argentine farmers continued to lag the same period last year.
As of Aug. 3, Argentine farmers had pre-sold 21.57 million tonnes of 2021/22 soybeans, up 263,000 tonnes from a week earlier and down from 26.76 million tonnes a year earlier.
The Buenos Aires Grain Exchange forecasts Argentina’s soybean production to reach 43.3 million tonnes in 2021/22. In its July supply and demand report, the USDA projected Argentina’s production at 44 million tons.
Argentine farmers are reluctant to sell soybeans as 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 1.003 million tons of 2022/23 soybeans, an increase of 55,000 tons from a week ago and down from 1.357 million tons in the same period last year.