MercoPress. South Atlantic News Agency
Argentina forecasted to increase wheat area by 25% for a 15/16 million tons crop
Argentine wheat exports more than doubled in the first quarter, government data showed, as farmers rushed to sell stockpiles ahead of an expected jump in plantings spurred by the open-market policies of new President Mauricio Macri. The surge in Argentine supply is hitting an oversaturated world market and putting downward pressure on wheat prices already near their lowest levels in six years. Read full article
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Disclaimer & comment rulesDoes one get the impression that argies are doing the wrong thing again. If wheat prices are already at a six-year low, what is the point in trying to increase the crop. An exercise in how to grow more and get paid less? Still, perhaps wheat and soy is all they can produce that might sell. Or are the producers hoping that the population will decide on a new fad of bread sandwiches.
May 18th, 2016 - 02:44 pm - Link - Report abuse 0Dumbasses.
May 18th, 2016 - 03:55 pm - Link - Report abuse 0In 1919 wheat sold for $2.16 a bushel.
Wheat is $4.78 today.
That $2.16 in 1919 dollars would now be worth $30.96 in 2016 dollars.
Oh, the joy of selling without paying the dread export tax!
May 18th, 2016 - 05:16 pm - Link - Report abuse 0Argentina producers will end up selling wheat at a depressed price, but without contributing to the common piggy bank.
Another benefit of primitive capitalism courtesy of Macri's Joyful Revolution.
*shrugs* Even if the price per ton drops, the farmers could still end up with more money so long as they grow (and sell) enough extra tons. Essentially the same phenomenon that lies behind the '1 for 60p, 2 for a £1' special deal - less profit per item, but sell enough and the company makes more money.
May 18th, 2016 - 05:21 pm - Link - Report abuse 0The risk is that the price drops so far that they end up with less money plus stocks of wheat they can't sell. But that is really in the hands of the big players...Argentina growing and exporting a bit more isn't exactly going to crash the market.
The actual risk is that you plant and can't recoup your input costs.
May 18th, 2016 - 05:36 pm - Link - Report abuse 0You can defer equipment maintenance and replacement for a few cycles as well as full measure chemical and fertilizer regimes but if you catch multiple over production harvests than you are no longer in business.
So farmers will pay income tax, company tax and any consumption taxes. They'll also employ people and purchase equipment.
May 18th, 2016 - 11:09 pm - Link - Report abuse 0Sounds like Macri's policies are having the desired effect of growing the economy. It is up to the farmers to decide what to plant without distorting policies by the government.
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