What I know is that Argentinean farmers are considering seriously not selling their soybean crop very soon. The measure would be a protest againt some policies from the government of Argentina. Growers pay for their agricultural inputs with dollars, but the local currency is very devaluated under the 'blue dollar' (US$ 1 = AR$ 7.80), while their soybean sales are made under the official currency value (US$ 1 = AR$ 5.05).
While the global bean market wants product sooner than later, isn't this situation with Argentine farmers hanging onto to their beans pretty normal, as they do not want to risk the currency devaluation and will sell beans when they need to buy inputs, etc??
Argentina has 8.5% of its corn crop harvested. For soybeans, 3.6% of the total hectares are cut. Also, to date there are very few sales, due to low prices, low profitability and lower yields. Farmers are waiting for a recovery in the market prices for soybeans. Corn will not be sold until the government taps the market, most likely not until the crop is harvested .
I would expect another round of Chinese cancellations, another drop of 20-30 cents and then another round of buying by the Chinese.........we are slow learners.
"Success happens when preparation meets opportunity"
AG MOBILE
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