ARGENTINA: Grain sales out of Argentina have bumped back up after faltering last month after currency controls were lifted, a report from the Rosario Grains Exchange showed on Friday.
In mid-April, Argentina loosened controls on currency which had led to a number of alternative exchange rates, including for agricultural markets.
The measure was welcomed by the grains industry, but sales were initially slow, with exporters unsure of where the currency would settle and as the soybean harvest lagged behind schedule. But past weeks have ticked back up, the grains exchange’s report showed, with exporters closing deals to sell 11.6 million metric tons of grain at $3.86 billion.
Locally, farmers sold 8.8 million tons of grain, with over half of that being soybean. The gap between the official peso-dollar exchange rate and the grain rates has also narrowed since mid-April, the exchange said.
Before, the gap was close to 30%, and since then has averaged just a 3% difference, according to the exchange.
“As the difference narrows, distortions between dollars received per ton on the local market are being eliminated, particularly on the supply side,” the exchange said.
The agricultural markets are an important source of foreign currency for Argentina, which needs the reserves as the government attempts to stabilize the long-faltering economy.
The administration of President Javier Milei had slashed export duties on agricultural shipments in a bid to speed up sales, though that measure is set to expire at the end of June.
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