High supply redefines Argentine agricultural scenario

The new Argentine wheat crop is expected to match the record of 2021-22, but the progress occurs amid pressured prices and a delicate economic scenario. The country is going through a currency crisis and is seeking external support to stabilize the economy while preparing to harvest 23 million tons in 2025-26, driven by unprecedented rainfall that increased soil moisture. Despite the productive potential, hedging covered only 15 percent of the crop in mid-October, half the usual level for the period. According to the Rosario Stock Exchange, the strong global supply and the change in China's purchasing behavior explain part of the price decline, as well as the competition from cheaper corn in the feed market. The 20 billion dollar agreement with the United States seeks to alleviate the lack of liquidity in hard currency after the rush for the peso in September. News indicates that the country will receive additional support through sovereign funds and private banks, while the U.S. ...