Buenos Aires, Tuesday 13th. The electoral debacle of President Macri’s government coalition in the primaries hauled down the stock of the largest local ag-companies in the stocks markets like Nasdaq or NYSE. For example, Cresud ($CRESY) viewed plunging its stock from US$9.95 last Friday to US$6.16 this Tuesday. Also, Adecoagro ($AGRO) also viewed the shrunk of its stock from US$7.05 to US$5.60 from Friday to Tuesday. But even the stock of an ag-tech like Bioceres ($BIOX), which had been granted by the USDA with the approval of its HB4 technology, dropped from US$7.20 to US$6.38 in 24 hours.
Cresud is one of the biggest farm companies in Argentina, planting more than 200K hectares of cash crops per year, producing a half million tons. In December 2015, when Coalition Cambiemos took the control of the country, its stock averaged US$11. During 2017 and prior to March 2018 the stock revalued to US$20. When economics got out of order, the stock began to drop until to hit the bottom this week at US$6.16.
Meanwhile, Adecoagro is rundown after the primaries. Its stock also averaged US$11 in December 2015 and stayed flat in the following two years. The fall of the stock started early 2018, previous to the Peso debacle, but currently is expressing its lowest price around US$5.60.
Adecoagro plants 185,000 hectares per year, producing more than 600K tons. This year the company entered in the milk business buying processing plants to SanCor.Next August 15th, the company will present the 2Q results, when the investors probably will ask about the current circumstances.
Finally, Bioceres is a biotechnology company founded in 2001 by a group of farmers. They accessed to the discovery of the scientist Raquel Chan, who found a gen in the sunflower related to the drought resistance. In partnership with the Conicet (the national R+D institute) Bioceres moved the gen from sunflower to soybean and wheat. The HB4 in soybean crop was authorized by Argentina and Brazil. But last week, the USDA also approved the technology, pushing the stock price up to US$7. Although the market expected that rising continues, this week the stock seems to be hauled by the generalized economic and financial crisis of the country.