Crop export dollars for Argentina grain drop nearly 59% in March

Argentina has suffered its worst drought in decades
calendar icon 4 April 2023
clock icon 1 minute read

The value of dollars from Argentina's drought-stricken farm exports fell by nearly 59% in March from the same month last year, Reuters reported, citing an industry group on Monday.

Last month, the value of dollars from farm exports reached $1.229 billion, down from $2.984 billion a year earlier, according to the combined oilseed industry and grains export chambers CIARA-CEC.

Argentina, the world's top exporter of processed soy and No. 3 corn exporter, has suffered its worst drought in decades, which has strained an already ailing economy.

Declining soybean yields have deprived processors of the soybeans needed to make soybean meal, Argentina's top export.

"The inflow of foreign currency in the month of March reflects a market affected by the extreme drought that has reduced production and led ports and grinding plants to operate with extremely high levels of idle capacity - the highest in years," CIARA said in as statement.

Crop exports are a critical source of foreign currency for Argentina's cash-strapped central bank.

The government said it would launch a preferential exchange rate this week to stimulate soybean exports.

Known as the "soy dollar", such preferential rates were used twice last year to boost exports and increase the central bank's reserves.

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