Argentine Farmers Hold Soybeans Amid Peso and Policy Uncertainty

Argentine farmers are selling soybeans at the slowest rate in a decade, betting on a weakening peso and potential tax relief under President Javier Milei. This slow pace is worrying the government, as soy is Argentina's main foreign currency source, with producers focused more on corn sales due to stronger prices.

Argentine farmers are selling their soybean crops at the slowest rate in ten years, banking on the expected depreciation of the peso and possible tax concessions from libertarian President Javier Milei's administration.

As of March 19, government data revealed only 8.4 million tons of 2024/25 soybeans had been sold, representing about 17.3%-18.1% of the expected harvest. This marks the slowest selling pace since the 2014/15 season, down a quarter from last year.

The delay in sales, fueled by currency futures betting and anticipation of policy changes, poses a challenge to the government, which relies on soy exports for foreign currency inflow. Meanwhile, adverse weather conditions and stronger corn prices have shifted farmers' focus to corn sales.

(With inputs from agencies.)