MercoPress. South Atlantic News Agency

Regional News from Pta. Arenas.

Headlines:
US dollar falls to 670 Chilean pesos; Sun eclipse charter flight; Magallanes wool for India;
Beef prices controversy.

US dollar falls to 670 Chilean pesos

For the second week running the US dollar showed a strong descending tendency having reached 670 Chilean pesos to the greenback last Friday in Punta Arenas money exchange houses. After having reached a peak of 753 pesos last March the US dollar has been gliding downwards and market analysts believe it could even reach 650 Chilean pesos. "Chile's improved economic prospects, higher copper prices, lower oil prices, the US free trade agreement are helping to strengthen the Chilean peso. Not even the Argentine quasi default had an influence", indicated Raúl Bustamante, a Punta Arenas financial expert. Similarly the Euro has also dropped 40 Chilean pesos in two weeks and now stands at 760 pesos. "It's a good moment to save in foreign currency or travel overseas", added Mr. Bustamante who revealed that the rapid drop of the US dollar has surprised many local money exchange houses "that have been exposed for having bought too expensive".

Sun eclipse charter flight

The sun eclipse sightseeing charter flight programmed for next November over the Antarctic continent could last an estimated 13 hours. Paola Contardo, Lan Chile's manager in Punta Arenas said the Chilean flag carrier is organizing the charter for Travel Quest International and the prestigious Sky & Telescope magazine. The flight is planned for next November 23 and the aircraft is an Airbus A340. Ms. Contardo added that the sun eclipse charter will be the most significant of the 2003/04 season's 28 Antarctic over flights. The program contemplates four flights in November; four in December; eight in January; seven in February and five in March, all of them in combination with sea cruise vessels arriving in Punta Arenas.

Magallanes wool for India

The Indian market has been targeted by Magallanes Region wool farmers in the south of Chile. A delegation from Profo Wool & Meat recently visited India, the world's second importer of wool behind China, and established contact with four of the main processors. "I believe this is going to be an excellent year for wool. Indian operators showed great interest in our wool even when they normally buy in Australia and New Zealand. I think we can compete", said Mr. Juan Gysling, president of Profo Wool & Meat. The delegation visited New Delhi, Armistar and Luidhiana and was assisted by an Indian contractor. The cost of the trip was partly financed with financial help from ProChile the Chilean organization to promote overseas sales. Besides India, the Magallanes delegation also visited Russia, "a more complicated market for greasy wool". However Mr. Gysling said he was encouraged by the fact that Russian showed interest in Chilean made blankets and other heavy fibre garments.

Beef prices controversy

The recent closure of the Chilean market to Argentine beef has had a direct impact in beef prices in Punta Arenas that have increased an average 15/20%. Magallanes region only has fresh local beef from November to April having to import substantial volumes the rest of the year mostly from Argentina, Brazil and Uruguay. However Patricio Corcoran a local meat trader said the impact of Argentine beef in Magallanes is no longer that important because "this is not the first time imports have been banned in recent years". But Francisco Crespo another Punta Arenas businessman who manages Central de Carnes was less enthusiastic, "the ban on Argentine beef will have an effect, particularly between July and December. Cattle prices have already increased in Santiago". Mr. Crespo said that Argentina supplies 20 to 30% of the one thousand tons of beef imported to Punta Arenas, "the rest comes from Brazil and Uruguay". "It takes time to licence more Brazilian export abattoirs and if the foot and mouth ban in Argentina lasts more than six months, beef prices will remain high and steady", said Mr. Crespo. "Those retailers who have stocks can gradually overcome the situation, but those without stocks will be forced to raise prices immediately", concluded Mr. Crespo.