Preferential exchange rate encourages Argentine farmers to sell 3.1 million tons of soybeans in three days
Foreign media, September 8 news: Argentina’s soybean farmers sold a total of 3.1 million tons of soybeans from Monday to Wednesday, nearly five times more than last week, after the government introduced new foreign exchange incentives, the Rosario Grain Exchange said.
Argentina is the world’s largest exporter of soybean oil and soybean meal, and the third largest exporter of soybeans. Argentine farmers have been reluctant to sell soybeans as hard currency against inflation and a weakening currency.
On Sunday, Argentina’s Economy Minister Sergio Massa announced the new preferential exchange rate, which will settle soybean sales this month at 200 pesos per dollar instead of the official 140 or so pesos.
Soybean sales on Wednesday stood at 1 million tonnes, bringing the total since the preferential exchange rate policy took effect to more than 3 million tonnes, the Rosario bourse said. Farmers sold just 667,000 tonnes of soybeans last week.