Day: May 6, 2020

Bage pushes up Argentina wheat crop estimate again

The Buenos Aires Grain Exchange (BAGE) has revised upwards its expectation for this year’s wheat crop, projecting the 2020/21 harvest to yield 21 million mt on a planted area of 6.8 million hectares. BAGE said that the 21 million mt figure would be the highest in the country’s history, forecasting yields at 3.14 mt/ha compared to 2.92 mt/ha last year. It expects exports to reach 13.3 million mt, up from 12.3 million mt.
Barley production was forecast at 3.75 million mt for 2020/21, up 7.1%. Barley exports are estimated at 2.5 million mt, up from 2.2 million mt.

The Argentine government defaulted on a $2.1 billion maturity with the Paris Club

The Ministry of Economy is seeking to swap the sovereign debt, while at the same time holding negotiations with the International Monetary Fund (IMF) and the Paris Club. Argentina owes the International Monetary Fund $44 billion, while the European Union recognized debt and made a payment plan, which is not fulfilled. It would not alter relations with Argentina. The very letter of the agreement allows for a 365-day default and renegotiation during that period.

Government forecasts 6.5% drop in economy and 3.1% fiscal deficit

A sharp drop of 6.5% in the gross domestic product (GDP) would be registered this year by the Argentine economy. An official document from the Ministry of Economy called “Pautas para la Reestructuración” estimates that there will be a recovery of 3% in the 2021 GDP, it would not be enough to compensate the retraction of the current year. Then the country expects a projected growth of 2.5% in 2022. After that a grow of 1.7% per year, from 2023 to the end of the decade.

The international reserves rose $15 mn to $43.59 bn

The dollar “Cash with Liquidation” (CCL)jumped 6.5% on Tuesday to 119.91 pesos. The spread widened to 79%. The blue dollar, in the informal market, ended stable at 120 pesos. The ROFEX futures market traded $462 million. The international reserves rose this Tuesday $15 million to $43.59 billion