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Argentina: Glyphosate price rose 37.5%, affects the purchasing power of soybeans and corn
Oct. 28, 2019
The Cordoba Cereal Exchange published an economic report in which it warned of a loss in the purchasing power of soybeans and corn.
According to the stock exchange entity, the input-output ratio deteriorated 7% for the oilseed and 1.6% for the cereal, within one year.
The main factor that contributed to this was the fall in the international prices of both crops and that despite the devaluation, the internal values of the grains did not fully accompany the evolution of the dollar, due to the excellent supply that continued after the record harvest.
Supplies
Specifically, what was most expensive was the acquisition of glyphosate, a key input for both crops, and in one year, it increased 37.5%, from US$240 per 100 liters in September 2018 to US$330 last month.
Thus, 43.6% more tons of soybeans and 45.7% more corn are needed to make this herbicide.
Seeds have also emerged more expensive; to buy soybeans, 4.4% more grains must be available, while it is 5.9% more for corn.
In contrast, in relative terms, diesel and fertilizers are cheaper than a year ago. In soybean, 8.6% less tons are needed for fuel and 7.7% less for monoammonium phosphate. In maize, "monoammonium phosphate, diesel and urea improved their ratio and 9.5% to 5.8% less grain is needed for the acquisition", said the Stock Exchange.
Wheat, the better of the crops
Unlike the summer crops, wheat today has a purchasing power 7.2% higher than last year, mainly because prices did not vary but inputs were cheaper.
While glyphosate is more expensive, less of it is used for this crop. In contrast, diammonium phosphate, diesel and urea faced relative losses of 13.4%, 12.1% and 10.8%.
"The product input ratio (for wheat) is at a relatively low level compared to the previous years, which creates an incentive to provide technology to the crop in order to improve its commercial quality and contribute to the sustainability of our soils," said the Cordoba Stock Exchange.
Source: agrovoz
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