Buenos Aires, December 3, 2019. Prior to the accession of the next government, farmers and exporters are accelerating their sales of grains. They are afraid of the incoming administration rising the export taxes to farm products, so they are trying to block this measure by selling their grains in advance.
There is an indicator of the rhythm of the sales: during November, the collection of export taxes peaked at 900 million dollars, a higher amount than the 856 million dollars collected in May, at the top of the harvest.
In fact, export taxes represented 11% of the total duties collected by the government last month. That is the largest percentage since September 2018, when those taxes were re-imposed.
On the other hand, grain exporters settled 2.186 million dollars during November. It was the first time the dollar settlement surpassed the values of October and September. Usually, dollar settlement falls as the harvest peak stays behind. This gives an idea of the frenetic rhythm of recent grain sales by farmers.
Grain export registration climbed to 16.2 million metric tons last month, and only on the first day of December, other 1.64 MMT were registered. By the time the new government takes office, perhaps more than 40 MMT of the coming harvest will have already been sold.
As the new harvest will be smaller than the previous one, and the harvest prices will probably be lower than the ones of 2019; the Fernandez administration will need to deal with fewer dollars from the farm economy, than their predecessor, Mauricio Macri.