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LatinNews Regional Monitor: Brazil & Southern Cone - 18 March 2019

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In brief: Argentina

* The president of Argentina’s oilseed industry and cereal exporters chamber (Ciara-CEC), Gustavo Idígoras, has said that in his view the inflow of foreign currencies resulting from soya exports will be a key determinant for Argentina’s domestic economic performance this year. Argentina is due to have a bumper soya harvest of 53m tonnes, which the government has predicted could bring in some US$17.2bn to the country to stimulate the domestic economy and help it come out of its current recession. However, Idígoras has said that, despite the big harvest, so far the sale of only 8.64m tonnes of soya has been agreed, 63% less than at the same stage last year as local producers hold off exports in an attempt to secure higher prices to offset the sharp depreciation of the Argentine peso. Idígoras said that this lack of sales could result in soya exports delivering “a much lower level of foreign currency inflows than anticipated” and warned that the level of inflow will very much depend on the stabilisation of the peso/US dollar exchange rate.