The International Monetary Fund will send another mission to Buenos Aires on Monday to continue debt strategy talks and discuss “next steps,” an IMF spokesman said on Thursday, as Argentina seeks to renegotiate its $57 billion financing package. Julie Kozack, the IMF deputy director for the Western Hemisphere, and Luis Cubeddu, head of the IMF’s mission in Argentina, will lead the team. In their previous visit just over a week ago they said Argentina's sovereign debt was "unsustainable".
Soybean output for Argentina, is forecast at 54.5 million mt, up 3% on previous estimates in 2019-20 crop year (November-October), on good crop conditions across the country, according to the Buenos Aires Grains Exchange. The world's third largest soy producer and exporter is projected to export 8.2 million mt of soybeans in 2019-20, down 10% on the year. The country's soybean meal exports are forecast at 30.85 million mt, up 10%, while soybean oil shipment are projected at 6 million mt, up 14% year on year.
Buenos Aires Grain Exchange raised its forecast for Argentina's corn production to 50 million mt in 2019-20, up 1 million mt from the previous estimate, and not far behind the record 50.6 million mt harvest during the last season. Argentina, the third largest exporter of corn in the world, is likely to export 33.5 million mt of corn in 2019-20, compared to an estimated 36 million mt in 2018-19, according to the US Department of Agriculture.
The US Export-Import Bank (US Exim) has backed the export of oil and gas services equipment from the United States to Argentina with seven-year guarantee. The guarantee covers an $18.4mn loan from HSBC to A-Evangelista S.A. (AESA), a wholly-owned subsidiary of energy company YPF. The Argentinian engineering firm will use the financing to buy oil and gas services equipment from three small US-based businesses.
Argentine agricultural machinery factories recorded a 28.1% drop in production during 2019, according to a survey by the IES consultancy. The main items affected were harvesters, tractors and smaller equipment such as harvester and sprayer heads. The fall found the factories with an idle capacity between 35% and 40%, according to estimates of the Argentine Chamber of Agricultural Machinery Manufacturers (Cafma).