The growth of grain export sales in Argentina increased significantly

Argentina’s grain exports reached the $1.25 billion mark in January this year, surpassing last year’s figure by 64%, according to datamarnews.

The increase in sales is attributed to the devaluation of the Argentine peso by more than 50%, which has narrowed the gap between the official exchange rate and the common parallel rates used to circumvent strict cash flow controls. This made it more attractive for local soybean, corn and wheat producers to export their products because they would receive more pesos for their overseas sales in dollars.

According to the Argentine Grain Export Chamber, the foreign exchange gains in January were the result of the influential new macroeconomic exchange rate introduced by the country’s new government, which is also affecting the dynamics of trade in grain products.

Tags: Argentina, corn, export, grain, soybean, wheat