Buenos Aires, January 1, 2020. The recently merged Argentine futures market, MatbaRofex, achieved a new record. During the last year 52.78 million metric tons of grains were hedged, 20% above 2018 and 100% above 2017, when only 26.3 MMT were covered.
One of the contributors to this record was the large harvest 2018/19, estimated at 147 MMT by the Ministry of Agriculture, Livestock, and Fisheries. But despite that corn surpassed the soybean production (58 vs 55 MMT), the oilseed was the most operated product at the futures market. Soybean operation accounted for 56% of the total, relegating corn to the second place with 27% of the total. The third and last grain operated was wheat, with 17% of the total.
Consulted by eFarmNewsAr, sources from the grain market expressed satisfaction with the business performance, but they stressed that despite this dramatic growth, only one-third of the grain harvest is covered in the futures market. They believe that financial institutions could help farmers and operators to increase hedging in the futures market if they would offer reasonable credits to cover the daily margins.
This year the merger between the two domestic futures markets, Matba (placed at Buenos Aires) and Rofex (placed at Rosario), was approved, creating the largest futures market in South America.