The agricultural market analyst, German Iturrizawas broadcast on Channel E and assessed the impact of the change in the exchange rate band system announced by the government and surveyed the prices of wheat, corn and soybeans in both the local and international markets.
Germán Iturriza explained that the change in exchange rate policy will not have any impact on the manufacturer’s decisions in the short term. “For practical reasons for the agricultural sector, thinking for the producer, that absolutely nothing changes at this momentin practical and short-term terms,” he noted.
Changes to the banding system and increased flexibility
However, he emphasized that flexibility brings important signals for the future. “The interesting thing is that from January 1st somehow There begins to be a certain flexibility“, he explained. He also clarified that “it neither implicitly nor directly means that The dollar will rise 2.5% from January 1st“.
Iturriza stressed that the biggest problem so far is the actual appreciation of the band: “Instead of the band going up, even though we all knew it was going up by 1%, actually went backsomething sooner or later I would have a problemTherefore, he defined the measure as “it’s like taking a breath and saying, well, let’s see. We’ll talk again in February and see where we end“.
The wheat boom continues
Regarding wheat, he described a scenario of abundance putting downward pressure on prices. “The wheat doesn’t stop, every week It’s a little more production” he warned, although he admitted that “we’ve already made the record.”
Regarding prices, the respondent explained the decline in the futures market: “Since August, which was around $205,210, touching 180, 182 dollars“For lower grades the picture is more complex: “In crop quantities of 165, 170 dollars were heard, This is a pain“.
The key recommendation was to know the goods available. “Before you go to place a truck, Analyze the quality of your batch” he insisted, because “if you have a wheat with ten and a half or eleven proteins or a wheat with high gluten, well, You have gold dust“.
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