Farmers sold 1.32 million mt of new crop corn compared with just 76,000 mt in the same week last year, with new crop wheat sales also strong at 485,000 mt versus 46,000 mt a year earlier. The 2019/20 crop was sold at a ratio of 3:1 [with the latter number representing the 2020/21 crop] before the export tax was raised from 7% to 12% in December. expectations are that there could still be a further upward revision for export taxes for corn and wheat, from 12% to 15%, the trader added. Data for the 2020/21 soybean sales campaign is yet to be released.
The U.S. credit rating agency Moody's warned Wednesday that Argentina's decision to pull out of trade negotiations conducted by the Southern Common Market (Mercosur) would mean a "sustained loss" of the country's economic potential.
Country risk as measured by JP Morgan Bank rose 10 points, or 0.2%, to close at 3,999 points, after exceeding 4,000 points during the day. Bonds in dollars fell to 9% after the National Securities Commission (CNV) forced the Common Investment Funds (FCI) in pesos to invest at least 75% of its assets in financial instruments in local currency. The S&P Merval Buenos Aires Stock Exchange and Market (BYMA) index rose by 0.4% to 33,185 units.
International Reserves fell by $50 million to $43.55 billion. Stock market dollars decreased by 7.5% (9 pesos); with this, the exchange rate gap fell from almost 80% to 65.7%. The informal "blue" dollar rose to 121 pesos amid growing demand for the currency.
Due to greater optimism in the debt negotiation and the restriction to the FCIs to invest in dollars, the advances in the papers of Banco Supervielle (11.3%), Banco BBVA (10.5%) and Despegar (10.2%) highlighted. The rest of the firms in the financial sector also recorded an extremely positive day, with increases of no less than 6%. The only two companies that had negative variations in their assets in New York were Edenor (-1.9%) and Telecom (-0.7%).