by PressArgentine exports exceed last year’s figures
Argentine exports of grains and oilseeds increase
According to official statistics, last month Argentina‘s exports of oilseeds and grains reached the mark of $3.2 billion. This figure is 17% lower than that observed in the previous period, and 10% less than the same month in 2021. The reason for the decline in supplies experts call for unfavorable weather conditions and problems on the part of truckers.
The reduction of exports is aggravating the situation, which has been observed for some time in the industry of oilseeds processing. Even at the peak of the season, soybean processing enterprises operated with negative profitability.
It should be noted that Argentina has a value-added tax, which limits exporters and reduces their ability to pay. Total sales in the sector for the current year amounted to 22.3 billion dollars, a figure 10% more than was recorded for the same period in 2021. Overall, the country achieved a record volume of grain and oilseeds exports.
However, it is important to keep in mind that comparisons of figures for a given period may not be accurate, as income in currency may fluctuate depending on grain prices and other factors in the world market. In addition, it should be understood that a large proportion of funds are received in Argentine accounts before the delivery of grain takes place. For example, when exporting oil and flour, the gap between receipts and shipments is 90 days. In the case of grain sales, this period is about 30 days.
Sales of agricultural products in Argentina are in full swing. According to the relevant ministry, local farmers have already sold 57% of the soybean crop for the 2021/2022 season. Activity in this segment increased after the government introduced a special preferential exchange rate. This move made it possible not only to accelerate sales but also to increase the country’s foreign exchange reserves. The latter suffered as Argentine soybean producers stopped selling their products. The refusal to sell was a reaction to a sharp increase in speculation amid the devaluation of the local currency. After the government raised the price of oilseeds, sales skyrocketed. As a result, sales of soybeans reached the level of 200 pesos per dollar, while the official rate in the country is 140 pesos per dollar. Only in the first week of sales 2.1 million tons of soybeans were sold at a discount, before that the figure was only 268 thousand tons.
Along with the old harvest, Argentine farmers are already actively selling the new crop.