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Argentina's grain market is undergoing notable shifts following the government’s introduction of a new exchange rate policy that replaced the "Dólar Blend" with a banded system and eased access to foreign currency. The changes have significantly narrowed the gap between official and financial exchange rates, boosting dollar-denominated prices for key crops.
Soybean trading has surged, with daily volumes jumping 50% in the week starting April 21, driven by improved weather, harvest progress, and stronger dollar returns under the MEP exchange rate. In contrast, trading activity for wheat and corn remains subdued, yet prices in financial dollars have reached multi-year highs—nearly nine years for corn and since May 2024 for wheat.
The Rosario Board recorded mixed results over the past week: soybean prices dropped 7% in pesos, while wheat fell 1% and corn rose 1%. However, when measured in MEP dollars, soybeans, wheat, and corn are trading 11%, 15%, and 18% higher respectively.
Internationally, soybeans are benefiting from easing tensions in the U.S.–China trade dispute, while cereal markets remain volatile. Despite early market caution following the policy shift, activity—particularly in soybeans—is gaining momentum.
April 25, 2025/ Rosario Stock Exchange/ Argentina.
www.bcr.com.ar
