The Government reported that as of August 31, the public sector debt as a whole, in pesos and foreign currency, amounted to the equivalent of $329.4 billion, $2.05 billion more than the previous month, as a result of placements and assistance from the Central Bank for $4.74 billion and payment of debt maturities for $2.69 billion. Total debt accumulated $16.12 billion in 9 months.
Agro-industrial exports are 73% of the total in the first semester and were the main generator of dollars.
The fall in prices that Argentine exports had to face in the first half of 2020 did not prevent the trade balance from showing a 44% improvement, with a positive amount of $8.09 billion, the highest recorded since 2009. There, agro-industrial exports represented 73% of the total amount shipped.
The 30% tax for the purchase of foreign currency would provide the State with some 342.71 billion pesos next year, according to the national budget prepared by the Government. It is 82% more than the projected for this year and would represent a contribution of some $3.4 billion in income for 2021.
The production of crude steel registered in August a 22.8% decline compared to the same month in 2019, with a volume of 336,000 tons; however, it marked an improvement of 3.4% compared to July. The accumulated production in the first eight months of the year reflected a 32.8% drop against the same period in 2019.
Falabella’s Argentine operation recorded a 60% drop in sales in the second quarter and announced the closure of four locations, two of Falabella’s stores and two of Sodimac’s stores, where it sells construction materials. Falabella shares lost 43.85% in the last 12 months, and yesterday recorded a 2.86% decline after the news about Argentina.
In the second quarter of the year, the company Bioceres increased its sales by 46% concerning the same period in 2019, reaching 51.9 million dollars. Likewise, its income registered an increase of 17% to $174.2 million for the fiscal year 2020 closed last June. The biotechnology company based in Rosario explained that the rise in income was driven by an increase in international sales of adjuvants, bio fungicides, inoculants and seed treatment packages.
The price of soybeans on the Chicago market rose again and traded at $367 per ton, under the November 2020 position. This value took the oilseed to the maximum level in the slates since June 2018. Since last April alone, the price has gained about $60. The upward trend also reaches corn and wheat, as a result of intense Chinese demand.
Inflation rates averaged 2% per month between April and July due to measures taken by the government to contain price increases due to the pandemic. However, as the consulting firm Ecolatina warns, inflationary pressures will reappear in the coming months, and it projects an acceleration in the rise of the CPI, which would close the year just below 39%, with an average of 4% per month in the last four months.
The price gap between what the consumer paid and what the producer of agricultural products received fell by 15%
According to a report by the Argentine Confederation of Medium-sized Enterprises (CAME), the average price gap between what the consumer paid and what the producer received for the main agricultural products participating in the family table fell 15% in August, and the producer’s share in the final price jumped to 28.9%.
Driven by the cost of personnel and the increase in diesel fuel, which make up more than two-thirds of the cost structure, the price of freight recorded a rise of 5.1% in August. Although it was the highest increase of the year, transportation costs accumulated a 32% increase in the last 12 months, a figure significantly below that shown in the accumulated 2019 (47%) and 2018 (61%).