Argentina farmers have already contracted 74.2% of soybeans (over 32 million tons) of the 2021/22 season according to the country’s government officials.
As specified in the South American agency, from November 24 to 30 this year, farmers sold 556 thousand tons of crop, which is the highest weekly figure in recent months. Total sales, however, are still behind last year’s pace (76.9%).
“Sales rose sharply during the week after the authorities resumed the preferential exchange rate mechanism (“soybean dollar”) on the domestic market,” the report said.
Preferential exchange rate
Recall that two months ago, Argentina farmers could send a ton of soybeans for export at a preferential exchange rate of 200 pesos per $1, although the official rate at the time was about 139 pesos per $1. This measure brought the country about $8 billion extra.
Starting from November 28 and till the end of the current year, traders will be able to sell oilseeds abroad at an exchange rate of 230 pesos per $1, although the real exchange rate is around 165 pesos per $1.
Argentina is the world’s largest exporter of soybean oil and meal and a key supplier of soybeans to foreign markets.
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