Argentina Strike Shuts Down Ports

Published on: 17:24PM May 30, 2019

Argentina Strike Shuts Down Ports

  • Thousands marched through Argentina's capital on Wednesday to protest austerity measures under President Mauricio Macri, as a nationwide strike brought the airports of the recession-plagued country to a standstill and halted work at key grains ports.
  • The strike, called by the country's main unions, comes as center-right leader Macri tumbles in the polls ahead of presidential elections in October, his popularity with voters hurt by high inflation, job losses and a weak peso.  
  • The union said it had gone on strike to force change in government policy as "the economic and social situation was getting worse day-by-day and inflation was destroying the purchasing power of people's wages."
  • What It Means For The US Farmer: Union strife in Argentina is a frequent occurrence and has the ability to disrupt agricultural exports from the country.  At FBN we believe that the current strike has slowed soybean meal exports and has been a contributing factor for some of the recent U.S. support for soybean meal and soybean futures prices.                     

Ukraine Raises 2018/19 Export Forecast

  • Ukraine's grain exports have risen to 46.1 MMT so far in the 2018/19 season compared with 36.4 MMT at the same point last season.
  • Ukraine harvested a record 70 MMT of grain last year, up from about 61 MMT in 2017.
  • Ukraine had exported almost 27 MMT of corn and 14.9 MMT of wheat as of May 29.
  • Ukraine's corn harvest was a record 35 MMT during the 2018/19 crop year.  The USDA is estimating that the country will produce a 33 MMT corn crop in the 2019/20 marketing year.
  • What It Means For The US Farmer: At FBN we don't view the surge of Ukraine agricultural exports as a surprise.  We believe that the country’s bumper corn crop combined with a strong U.S. dollar against the hryvnia, Ukraine’s local currency, has helped displace U.S. corn in the global export grids.  We also think that the estimated 33 MMT 2019/20 corn crop has the ability to pose challenges to the U.S. export program in 2019/20.

 

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