Day: April 24, 2020

Limit dollar holding to 25%, to funds, to contain escalation

After a new day of exchange fluctuations in the stock market and in the parallel market, where the blue dollar reached 120 pesos, the National Securities Commission (CNV) decided to establish a limit of 25% on the holding of deposits in foreign currency that are in the portfolio of the Common Investment Funds (FCI) open to curb the demand for the green bill.

Argentine soyoil exports hit six-year low in March

The world’s largest soymeal and oil exporter shipped just 201,500 mt last month, down from 316,000 mt shipped the month before and 359,000 mt from last March to its lowest level since February 2014, customs data showed. It takes first quarter soyoil exports to just shy of 940,000 mt – down nearly 18% on the year, its second lowest level in the past four years.

Argentina’s corn yields slip, soybean harvest 56.4% done: BAGE

Dry weather has enabled farmers to progress the soybean harvest, but corn yields are starting to show the effect, the Buenos Aires Grains Exchange. Despite the dryness, the entity maintained its production projections of 49.5 million mt for soybeans and 50 million mt for corn. Over the week, soybean harvesting added 5.7% to now be complete on 56.4% of the expected planted area, with BAGE putting the yield at 3.23 mt/ha. Corn’s harvest progress was much slower, with just 1.8% added over the week to take progress to 34.5%, still some 6.4% ahead of last year’s progress.

Indonesia opens market for beef imports from Argentina and Brazil

Indonesia has issued permits to import 20,000 tons of beef from Brazil or Argentina, the Trade Ministry’s director-general of domestic trade. state companies PT Berdikari and PT Perdagangan Indonesia have been appointed to carry out the imports. The Indonesian government is easing rules on imports of some food commodities as it moves to secure food supply amid the global coronavirus outbreak and ahead of the Islamic fasting month

The coronavirus crisis will deepen Argentina’s Ca negative ongoing economic malaise

Argentina’s economic recession will deepen this year, before a likely recovery in 2021. We now expect an economic contraction of 3.9% this year in Argentina, a more significant contraction than our pre-coronavirus forecasts. Business activity already had declined significantly in recent months across all sectors. On 3 April, we downgraded the sovereign bond rating to Ca from Caa2 and changed the status to negative outlook from review for possible downgrade. We have also taken rating actions on a range of other debt issuers, including sub-sovereign entities, nonfinancial companies and financial institutions.

Bonds fell to almost 7%.

The significant Argentine dollar bonds suffered a substantial punishment on Thursday, with setbacks of up to almost 7%, which led the country risk to close on the verge of 4,000 basis points, as a reaction to the government’s decision not to pay the interest on three bonds for $503 million, adhering to the grace period contemplated in the instruments.