April 13, 2023

 

Argentina authorises exporters to delay soy shipments for 60 days

 
 

 

The Argentinian government has authorised exporters to delay soy shipments for up to 60 days, as the nation copes with a lengthy drought that has affected grains production and reduced inflows of critical foreign currency, Nasdaq reported.

 

The announcement comes after the Argentinian government decided in March to delay corn shipments by up to 180 days, and similar measures were implemented for wheat late last year. It allows exporters more time to ship previously agreed-upon sales.

 

The government's new measure was made in Argentina's official gazette a day after the South American government announced a preferential exchange rate scheme for soybean exports from the country, which is the world's largest exporter of processed soy oil and soymeal.

 

The "soy dollar" scheme, which offers a 40% higher exchange rate than the official rate for sales of soybeans, had few takers on Monday, with potential participants citing a lack of technical details.

 

The new government resolution provided some details that may encourage more trades under the scheme.

 

A broker in Rosario, Argentina's main grain export port, said various points were clarified in the resolution that was published in the official gazette.

 

Argentina is hoping that the preferential exchange rate for soy exports will spark a surge in sales and bring in much-needed foreign currency to replenish the country's depleted central bank reserves.

 

The drought, which lasted from early last year to March, has resulted in the wheat harvest cut in half compared to the previous year, as well as repeated cuts to corn and soy production forecasts, slashing expected grain exports by billions of dollars.

 

-      Nasdaq

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