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Central Bank debt grows to 75% of gross reserves

The BCRA’s net purchasing balance improved to nearly $900 million, to recover the level of early May. The BCRA regulates devaluation to minimize the inflationary effect of the wholesale dollar increase, which governs trade operations. The official exchange rate rises by 17% in 2020, some four points above the CPI. The entity’s debt represents nearly $33 billion, 75% of gross reserves and three times the amount of net reserves (freely available) in the Central Bank.

ADRs and bonds sank to 13.8%

The S&P Merval de Bolsas y Mercados Argentinos (BYMA) index fell 6.1% to 37,990.59 units after negotiations between the government and some creditors to restructure the debt became complicated. Argentine country risk by JP Morgan bank rose 2.4% to 2,603 units.

Debt: the difference between the Government and the bondholders is up to $6.8 bn

The latest round of negotiations between the Government and the country’s main debt creditors managed to close the gap to between $6.1 billion and $6.8 billion. In the proposal presented by the Government to the AdHoc and Exchange Bondholders committees, there is a difference in the annual flow of $220 million from 2020 to 2046, if the average gap of five cents per dollar at a 10% exit yield is taken into account. That $220 million implies an estimated difference of some $6.1 billion in the fixed offer made by the Economy against that presented by the more stringent committees.

The soybean harvest reached 49.6 million tons

The 2019-2020 soybean harvest is complete. It reached a total production of 49.6 million tons, with yields of 29.4 quintals per hectare, and planting of 16.8 million hectares. The corn harvest reached 70.7% of the planted area, which means a crop of 4.3 million hectares and the total harvest estimate of 50 million tons is maintained. The wheat planting of the 2020/2021 agricultural campaign already reached 58.1% of the area, amid a dry climate in the northern and western sectors of the farming region, the planting projection is located at 6.7 million hectares, maintaining its annual growth of 1.5%.

Domestic chicken consumption increased by 5%

Red meat consumption remains at 53 kilos per inhabitant, although poultry and pork purchases are also at record levels. The poultry slaughter grew by 6% in the first quarter of 2020, and poultry production by 7.5%, while exports of the sector increased by 9% and also noted a 5% increase in domestic consumption of chickens, with a historical maximum of 50 kilos per capita annually.

The S&P Merval fell more than 5%

The S&P Merval de Bolsas y Mercados Argentinos (BYMA) index fell 5.2% to 40,471 units. Argentine stocks on Wall Street all ended in negative territory, with Edenor leading the panel with a 5.9% drop. In Buenos Aires, the most significant decreases recorded Banco Macro (7.45%), Ternium and Grupo Supervielle (6.7%) and Edenor (-6.5%). The stock market dollars plunged up to 1.3%, with a loss of up to 8.69 pesos.