Mumbai, May 05 (Commoditiescontrol): Argentina's soybean exports are off to a strong start in 2024, with grain companies registering record levels of new soybean crop sales in the first few days of May. This surge in activity is likely due to a combination of factors, including favorable exchange rates and a relaxation of government regulations.
Record Soybean Export Sales
Grain companies in Argentina have registered 540,000 tons of soybean exports in the first two days of May, compared to just 444,000 tons for the entire month of April. This suggests that farmers are eager to take advantage of current market conditions.
Government Says No Change to Export Taxes or Devaluation
The Argentine government has stated that it has no plans to remove export taxes on soybeans or devalue the currency. However, the current exchange rate, which is 20% lower than it was in December 2023, is effectively providing a subsidy to farmers by making their exports more competitive.
Slow Harvest and Lower Prices
Despite the strong export sales, only 34% of Argentina's soybean crop has been harvested as of May 2nd. This is well below the historical average of 55% for this time of year. Additionally, soybean prices in Argentina pesos are lower now than they were in December.
Analysts say that if there are no disruptions to the harvest or to foreign trade, May could see even higher levels of soybean export activity. However, the lower prices are a concern for farmers, and a strong bullish signal would be helpful to encourage more selling.
(By Commoditiescontrol Bureau; +91-9820130172)
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