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A Wilson Center commentary says Argentine farmers are storing soybeans rather than selling due to strict capital controls, high export taxes and an overvalued official peso. Farmers expect a steep devaluation that would raise the peso value of stored crop.
Government officials had temporarily cut export taxes by 3 percent in October to encourage sales.
Farmer storage restricts Argentine soymeal and oil export availability, keeping global supply tighter and supporting prices until selling picks up.
wilsoncenter.orgGregory RossNov 6, 2020After 172 past bullish policy events, Soybean Meal moved a median +0.0% over 5 sessions (50% higher; middle half -1.5% to +1.7%), and -0.8% over 20.
After 842 past bullish policy events, Soybean Oil moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
After 356 past bullish policy events, Soybeans moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), and -0.9% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
