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Argentina's central bank tightened foreign exchange controls starting September 16, raising the solidarity tax on retail USD purchases from 30% to 35% and the tax on USD credit card purchases to 35%. The BCRA also changed holding periods for FX assets and required firms with large maturing debt to present FX plans.
Brazil's central bank Copom decision was previewed the same day, and Peru reported improving July GDP and August employment.
Tighter Argentine FX controls reduce the peso's appeal and can slow export-related dollar flows, which may pressure Argentine soybean meal and corn export selling and affect regional crush margins. Currency moves in Brazil and Argentina feed directly into South American feed grain export pricing.
scotiabank.comSep 16, 2020Not enough comparable past events yet for a historical read.
After 73 past neutral macro events, Soybean Meal moved a median -0.3% over 5 sessions (44% higher; middle half -1.9% to +2.1%), and -1.6% 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.
