INSUBCONTINENT EXCLUSIVE:
exchange controls and encourage quicker sales
Farmers, who traditionally view soybeans as a hedge against inflation and currency devaluation, now hold back their crops in the face of a
volatile peso.As of March, official numbers showed that only 17% to 18% of the crop had been sold, a quarter less than the previous year
This retention represents around $8 billion in delayed export revenue, a significant figure for a country with low central bank
reserves.Heavy rains in March and early April have hampered harvesting, leaving many fields inaccessible and pushing the harvest pace four
percentage points below the five-year average.Storage facilities now operate at 85% capacity, yet farmers still resist selling, anticipating
Soybean Sales to Decade Lows
sector for vital foreign currency
However, a 33% export tax on raw soybeans-much higher than the 12% on processed products-discourages immediate sales.Many farmers use their
harvest as a savings tool, preferring to hold physical commodities rather than pesos, especially given decades of economic instability.The
Producers now sell only enough to cover immediate costs, waiting for clearer signals on currency policy and tax changes.Meanwhile, traders
and farmers speculate on a faster peso devaluation, especially amid talks of a major IMF loan
policy, and the real-world decisions of producers facing persistent uncertainty
