Buenos Aires, October 25th.
1.- Prior to the presidential election, next Sunday 27th, political uncertainty brings the economy to new currency depreciation. The dollar rose AR$4 during this week to AR$64 despite the Central Bank continued selling dollars, trying to contain the climbing.
2.- Some media informed that exporters are stopping new grains operations until to know the results of the election. Everything indicates that Peronism Party headed by Alberto Fernandez will defeat President Mauricio Macri in the first round. The latest polls show differences between 15 to 20 points.
3.- Meanwhile the Buenos Aires Grain Exchange (BCBA) warns about a critical situation for the wheat in large production zones in the country, but they don’t release a new output estimation, maintaining the latest one at 19.8 million metric tons. Frosts, drought, but also high temperatures combine itself to threaten the wheat production.
4.- The Ministry of Agriculture, Livestock, and Fisheries kept stable de forecast for the corn area, estimated in 9 million hectares, considering grain production and feedstock. The soybean area would marginally expand to 17.1 million hectares from 17.0 million last campaign.
5.- Soybean exports show a strong jump during September, accounting for US$511 million above September 2018, while soybean meal exports downed US$24 million on a year to year basis. Soybean crushing downed one million metric tons in September to 3.15 MMT in comparison with August (4.15 MMT). This volume is the lowest for a September month since 2012, with the exception of 2018 when the oilseed industry processed 2.92 MMT.
6.- According to the official data, biodiesel production for the mandatory blend plummeted in August 50% in comparison with July. The small and medium biodiesel industry produced 44K tons in August versus 95K in July and versus 84K tons as the Jan-Jul average.