Possible strike by Argentine farmers has led to a new surge in prices for farm produce
Argentine farmers are dissatisfied with the authorities ' intention to restrict until March 1, exports of corn, said about the possible strike in the form of a cessation of sales of all crops for export, which led to the next jump of the prices for agricultural products on US exchanges.
yesterday online meetings, several associations of farmers in the country have agreed to start a strike against the government's decision to stop before March 1, the registration of export sales of old crop corn. Among the options of the strike, discussed the termination of export sales of all crops, the blocking of export on all routes, deliveries, or complete cessation of work for three days. Farmers urged not to sell the corn of the old crop in the domestic market at prices below the export, or in General to stop the sale.
This news led to a surge in prices for agricultural products on US exchanges, and so began a session of growth following the increase in oil prices.
According to the WSJ, the meeting of OPEC+ Russia and Saudi Arabia agreed to increase oil production in the coming months, resulting in a single session, the March futures for Brent crude on London exchange ICE increased by 8% to 54 $/barrel, which corresponds to February 26, 2020 February futures for WTI oil increased by 6% to 50.2 $/barrel, which corresponds to February 25, 2020
On the stock exchange in Chicago soybean futures rose 3% to 501,5 $/ton, soybean meal 3% to 482,2 $/t, for soybean oil – by 3.5% to 970,4 $/t, maize – by 3.3% to RUB 196.8 $/ton, wheat – 1.7% to 240 $/t
Prices on U.S. exchanges are rising because the world markets of corn, soybean meal and oil on the background of the strike in Argentina is available only to American goods, and the Brazilian harvest will enter the markets only in February-March.
Favourable is the situation for Ukrainian maize, which was the most expensive in the world market. Now prices have increased by 10 $/t domestic corn offered at 240-245 $/MT FOB, whereas in the us – at 235-240 $/t FOB, and South American – at 250-260 $/t FOB.
