Argentine farmers are stuck at the horns of a dilemma.
News of a record U.S. soybean crop, underlined by the latest USDA crop report, is weighing on prices and the wide spread between old- and new-crop futures indicates that farmers should sell.
On the other hand, the possibility of a maxi devaluation of the peso offers the promise of substantial future gains for farmers who continue to store soybeans. Holding beans also provides protection should the local economy descend into crisis.
According to the latest Argentine government figures, farmers are holding for the moment. As of July 18, they had ...