Argentina Sold $24 Billion of Soybean to Boost Reserves

January 5, 2015

In the last two days of 2014 Argentine farmers agreed to export over $300 million of grains and oilseeds boosting the country’s central bank reserves. Amid economic instability, Argentina’s reserves plunged 37% to a seven year low of $27.3 billion as farmers hoarded approximately $4 billion worth of soybeans to hedge against inflation and the country’s crashing currency. Argentina is the world’s largest soybean oil and derivatives exporter, and gets about one third of its export revenues from commodities. Persuading farmers to stop hoarding their stockpiles from this year’s record 53.4 million ton soybean crop was crucial to stabilizing the country’s economy. Over the whole of 2014, farmers exported $24.1 billion worth of grains and oilseeds, and by year’s end the central bank reserves stood at $31.4 billion according to central bank data.

 

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