Argentina farmers celebrate as grain export revenue record is broken

The grain export revenue generated from Argentine foreign exchange transactions of oilseeds and derivatives in the first seven months of 2022 was US$22.3 billion, an all-time high and a 10% increase from the same period last year, according to a report released on August 1 by Argentine Edible Oil Association (Ciara) and by the Grain Exporters Association of Argentina (CEC).

The oilseed sector, including biodiesel and its derivatives, represents almost half of the total exports of Argentina, which is one of the world’s largest producers and exporters of grains and by-products.

Considering the difference between July 2022 and the same month last year alone, the inflow of foreign currency into Argentina from exporting grains, oilseeds, and derivatives reached US$ 3.16 billion, a 10% decrease. There was also a decrease compared to the previous month, June 2022 (17%).

The sell-off of agricultural exports has been in the eye of the storm in local politics in recent weeks after Argentine President Alberto Fernández accused farmers of withholding crops in their fields and not selling them in hopes of a better exchange rate.

On July 26, the Central Bank created a special regime to encourage the sale of retained soybeans at a more convenient exchange rate, a measure whose effectiveness is still uncertain.

According to official sources, farmers still own $13 billion in harvested and unsold grain.

Source: UOL

To read the full original article, please go to: https://economia.uol.com.br/noticias/efe/2022/08/01/argentina-bate-recorde-de-faturamento-com-exportacao-de-graos.htm

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