Grain Market Viewpoint

Argentina’s Peso In Trouble Again? Can the large Soybean surplus turn to a more concerning situation?

Argentina’s peso has remained mostly stable since the end of March, but in the past few days, the country’s central bank (BRCA) has allowed it to start weakening again. This follows a steady reduction in interest rates that’s been ongoing for the last month, which now stands 26.9%, far below the inflation rate, which most analysts believe is close to 40%.

It’s thought that Argentina will once again try to patch things up by devaluing the peso even further. This in turn will likely lead to the familiar scenario of farmers holding onto their crops as a hedge against the anticipated devaluation of the currency. Hence the thought of fewer soybeans and particularly less soymeal being available to the US or the rest of the world.I should also note the Argentine harvest of both corn and soybeans is running 20-25% behind last years pace and is adding to the excitement.

Bottom-line, take a big chunk of the Argentine soybean production out of the equation and global ending stocks immediately go from a large surplus to a more concerning situation. 

As you stay busy with spring, The Van Trump Report keeps you up to date. Try it for free Here.

Discuss this Blog Entry 0

Post new comment
or register to use your Corn and Soybean Digest ID
What's Grain Market Viewpoint?

Grain Market Viewpoint


Kevin Van Trump

Kevin is a leading expert in Agricultural marketing and analysis, he also produces an award-winning and world-recognized daily industry Ag wire called "The Van Trump Report." With over 20...
Blog Archive

Sponsored Introduction Continue on to (or wait seconds) ×