The agro-export sector of Argentina completed soybean sales operations for some 4.6 million tons, which translates into a foreign exchange income of more than US$2,000 million, in the first week of the entry into force of an official program to encourage exports through a higher value of the so-called “soybean dollar”, official sources reported this Sunday.

The Argentine Secretary of Agriculture, Juan José Bahillo, highlighted “the success of the measures, which achieved a historic soybean sales record” in “just one week” since the Minister of Economy, Sergio Massa, announced the launch a new “soybean dollar”, the exchange rate used to settle exports of the oilseed.

Advertisement

The new regime, which sets a more convenient exchange rate for exporters than the one in force previously, seeks to encourage producers to sell their crops and thus increase the South American country’s weak monetary reserves.

According to Bahillo, the producers received an average price almost 40% higher than the one they received on August 31, which “motivated sales to accelerate.”

In turn, the Central Bank established last Thursday a minimum interest rate to finance rural producers who maintain in their fields a “stock” of soybeans greater than 5% of their production, increasing the cost of financing for those farmers who retain the soybean harvest and do not sell it.

Advertisement

As the head of Economy had foreseen, this new exchange regime will allow the accumulation of at least US$5,000 million from the soybean liquidation until September 30.

Foreign currency income to Argentina from exports of grains and derivatives totaled US$3,387.8 million in August, which represents an 11% increase compared to the same month in 2021.

The oilseed-cereal complex, 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 derivatives.

Advertisement

The main export products of the South American country are soybean meal, corn and soybean oil.