Corn prices soar, making food more expensive

With a jump that more than doubled the price of corn, from $130 to $299.6 per ton last year, it has a decisive impact on chickens and eggs, on dairy products and is changing the way of producing meat: cattle are leaving the feedlot pens to graze in the fields. The price doubled in one year due to the drought in the USA and Brazil and sustained world demand for food. In Argentina, this is excellent news from the point of view of dollar income from exports, but domestic food prices threaten to continue rising.

Launch of $63.97 million zero-rate loans for the Buenos Aires countryside

Banco Provincia announced that the Buenos Aires entity already has funding of 6,000 million pesos ($63.97 mn) to finance agribusiness at the beginning of the new fine sowing season, with wheat and barley as protagonists of a campaign that is about to start with a nationwide investment of $1.91 billion. At the national level, winter sowing promises 23 million tons for a value of $3.79 billion in exports by the end of the year.

Mercado Libre lost $34 million

Mercado Libre reported its first-quarter results yesterday. Its net revenues grew 114% to $1.4 billion. It sold 222 million items, an increase of 110.2% compared to the same period in 2020. Mercado Pago processed $14.7 billion in transactions, up 81.8%. However, the e-commerce giant lost $34 million in the quarter, a net loss of $0.68 per share. The foreign exchange loss of $15.1 million is attributable to the additional cost of accessing dollars through an indirect mechanism due to restrictions imposed by the Argentine government on the purchase of dollars at the official exchange rate.

Record wheat and barley production and export revenues of nearly $3.8 bn expected

For the 2021/22 Fine Season, production expected to reach 23.6 million tons. Wheat would remain at 6.5 million hectares, and barley would expand its area to 1.15 million hectares, increasing 28% over the previous season. If these estimates realize, the Gross Domestic Product of both chains will reach $4.57 billion, and wheat and barley exports would rise to $3.79 billion.