Soy dollar 3 ends in Argentina with sales below expectations

The first phase of the Export Incentive Program (PIE 3 in Spanish), commonly known as the “soy dollar” project, is coming to a close on Wednesday, May 31st, 2023. This initiative, which establishes a special exchange rate of 300 pesos per dollar for exports from select sectors, has sparked intense debate regarding its overall outcomes.

Thus far, producers have traded a total of 7.9 million tonnes of grain, falling short of the initial expectation of 10 million tonnes set at the program’s launch. In terms of foreign exchange settlements, the exports have generated a sum of US$ 4,027,573,836 in the Single Free Exchange Market (MULC).

The final results of this phase of the “soy dollar” program will only be announced by the end of the week, as operations can be settled up to two days after the closing date, which falls on Friday, June 2nd.

Evolution of the “Soy Dollar” Program

The sale of soybeans at the special exchange rate began in mid-April at a sluggish pace, averaging 100,000 tonnes per day. This was partly due to the price set at USD 98,000 per tonne, which was lower than producers had anticipated.

It’s worth noting that at the end of April, the Buenos Aires Grain Exchange (BCBA) revised the soybean production estimate, reducing it from 22.5 million to 21 million tonnes available for sale.

Furthermore, private companies continued to lower their estimates for soybean production by the end of April. For instance, the Buenos Aires Grain Exchange (BCBA) reduced its estimate from 22.5 million to 21 million tonnes, further limiting the available merchandise for sale.

However, in recent weeks, the volume of business has picked up, driven by improved prices reaching $105,000 per tonne, with daily sales peaking at 590,000 tonnes.

These factors contributed to the shortfall in the amount of soy sold by producers compared to the initial expectations.

The Sunflower, Barley, and Sorghum Program also concludes its purchases today, although the deadline for foreign currency entry has been extended until August 31st.

Source: ámbito

To read the original report, see: https://www.ambito.com/economia/termina-el-dolar-soja-3-algunas-liquidaciones-se-extenderan-unos-dias-mas-n5736047

Sharing is caring!