‘Start Selling So Dollars Come in,’ Argentine Farmers Are Told
Facing a sell-off of the peso, President Mauricio Macri was hoping Argentina’s biggest source of dollars would show up to return a favor. Instead, he got a slap in the face.
There’s no sign they’re prepared to let go of millions of tons of beans stockpiled from the previous harvest, either. Argentine farmers generally have more confidence in the physical commodity than their nation’s unpredictable economy and currency. The invention of the silo bag -- something that was derided by supporters of Macri’s predecessor, Cristina Fernandez de Kirchner -- has also given farmers the ability to store beans and wait for a favorable exchange rate and crop prices.
But farmers are unlikely to do that until the end of volatility in the currency market. “We have to sell at the best price, and now is not the right time to make that call,” Francisco Perkins, who farms about 7,000 hectares (17,300 acres) of soy, said in a phone interview from Pehuajo in Buenos Aires province. Compounding farmers’ preference to ride out the currency storm, sales have been slowed even further by a deluge that has postponed the harvest.