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National & World Ag News Headlines |
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Argentina Asked Crop Exporters to Bring $1 Billion Next Week
USAgNet - 08/16/2022
Agentina’s government has asked the country’s crop export and processing companies to make sales equivalent to $1 billion over the next week as it seeks to bolster reserves, according to people with direct knowledge of the discussions.
Bloomberg News reports that the government discussed with Ciara-Cec, a group that represents more than 40% of Argentina’s exports, a mechanism implemented this week that aims to encourage the sale of crops and bring in hard currency to the country.
Members of the association have showed willingness to cooperate but have not said to what extent it will comply with the request, said the people, who asked not to be named because talks are private.
Representatives for Ciara-Cec, the economy ministry and the central bank did not immediately reply to a request for comment.
The move comes as Argentina’s reserves fall to dangerously low levels. Shipments of oilseeds and grain were worth almost $33 billion last year, but this year sales of soybeans that growers harvested from late-March to June have been slower amid high inflation
and bets that the government will eventually weaken the currency, improving terms for farmers.
Growers sold 20.9 million metric tons through July 20 of the 44 million tons they produced, according to the government, leaving roughly $13 billion still to trade based on Argentine spot prices.
While farmers have been slow to sell their crops, exporters play a role, too. Because of so-called delayed-price contracts in Argentina, over a third are still unpriced.
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