Wednesday, February 21, 2018

Wednesday, Feb

By Bloomberg

Oil at $77? It is in Argentina.

Oil has plummeted below $39 a barrel in the U.S. But despite the price bloodbath in global energy markets, it fetches nearly twice that amount in Argentina -- home to some of the most expensive crude in the world.

Even as prices plunged anew Monday, sending world benchmarks close to the lowest levels they briefly hit in the Great Recession, oil is still flying high in Argentina for the simple reason the government wants it that way.

There is some method behind the apparent madness. Argentina is home to the second-largest reserves of shale gas and fourth-largest of shale oil in the world. Faced with a $6-billion energy trade deficit in 2014, the government has been using its made-in-Argentina price to try to turbocharg... (Read More)

By Bloomberg

The real money is back in Argentina.

Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorite of the hedge-fund crowd, which made speculative bets on the fortunes of the troubled nation.

But in recent months, that’s started to change.

With presidential elections in October set to usher in a new administration, money managers from Invesco Ltd. to Allianz SE and Van Eck Global have begun to wade back into Argentina’s dollar-denominated bonds.

Those “real-money accounts,” industry speak for long-term investors such as... (Read More)

By Fresh Fruit Portal

The Argentine cherry industry hopes to reach new and distant markets by using a post-harvest technique normally reserved for different fruit types.

Cherries are an important crop to the country’s western province of Mendoza, but exporters often face challenges due to the fruit’s high perishability.

Due to this issue, researchers from the National Agricultural Technology Institute (INTA) decided to develop a post-harvest technique to help extend the fruit’s shelf life and preserve its quality.

“Up until now, 1-Methylcyclopropene (1-MCP) had only been used for climacteric fruits – those being fruits that continue maturing after having been harvested,” INTA post-harvest laboratory manager María Laura Rivero said.

“However, the INTA tested it out on a non-climacteric fruit, the cherry, and achieved good results.

“This procedure can lengthen the shelf life of a large number of fruits, among which are... (Read More)

By Buenos Aires Herald

Auction draws fewer bids than the amount offered; investors will be paid interest twice a year

The Economy Ministry yesterday sold US$1.09 billion worth of dollar-linked bonds, in an auction that drew fewer bids than the amount of debt on offer.

Although the government had initially indicated it would sell US$500 million of the Bonad 17 bonds, yesterday’s official gazette said it would seek bids for up to US$1.5 billion of the notes.

In the end, less than that was offered by investors, US$1.38 billion in total, of which the government took slightly more than a billion.

The bonds will be redeemed in pesos in 2017, and will be governed by Argentine law, paying an interest rate of... (Read More)

By Bloomberg

Argentina’s black market peso fell to its lowest in 10 months on expectations that a new government in December will have to devalue the official rate which is strictly controlled by the central bank.

The street value of the peso weakened 0.98 percent to 15.3 pesos per dollar, according to Ambito. That compares with an official exchange rate of 9.25.

While the majority of emerging market countries from China to Brazil are weakening their exchange rates to remain competitive, President Cristina Fernandez de Kirchner’s administration is refusing to accelerate the pace of depreciation of the peso ahead of Oct. 25 elections where the front-runner is from her party. The next government, which takes over Dec. 10, will have to address the overvalued exchange rate, according to Fausto Spotorno, chief economist at Orlando Ferreres & Asociados.

“There’s a significant expectation of devaluation,” Spotorno said by phone from Buenos Aires. “The next government will have to... (Read More)

By Fresh Plaza

Much of the fruit produced in San Rafael and General Alvear is intended for the industry, while the rest is sent to the fresh market. According to the latest data from the Land  Registry and an investigation by Alicia Elena Duek, from the National Water Institute, San Rafael has 4,227 hectares of peaches, 12,000 hectares of plums, 1,130 of pears and 60 of apples for the industry, while General Alvear has 1,343 hectares of peaches,  3,416 of plums, 116 of pears and 12 of apples intended for industrial production. As such, the South is the leading producer of fruit for Mendoza's industry with a total of 5,570 hectares of peach, 15,416 of plum, 1,246 of pears, and 72 of apples.

Compared to the other areas of the country, the difference is more than ample. In peach, the north produces 3,345 hectares and the center produces 3,136. In plum, the difference is abysmal, as the north only has 4,315 hectares and the centre only has 233. In pears, the south also clearly leads as the northern and central part of the country only have 259 and 321 hectares respectively. The only item in which the south is behind is in apples, as the Uco Valley cultivates 654 hectares.

In light of this, Alicia Duek made a report about the raw material for canning fruits in Mendoza in recent years, highlighting the average ton of fruit processed per department in Mendoza.

According to her numbers, in a regular season the local industries produce an average of... (Read More)

By Buenos Aires Herald

Used car sales grew to 166.000 units in July, a 17.2 percent rise in the yearly comparison according to the latest monthly figures released yesterday by the Automobile Commerce Chamber (CCA).

It was the fourth consecutive month of growth following a slump in the sector, which had followed the larger crisis in the auto industry, were production, exports and new car sales plunged for almost two years.

“We can see the used cars market ending the year with an interesting growth rate when compared to last year when we consider the difficulties in the industry,” CCA’s president Alberto Príncipe said.

According to Príncipe, the election cycle has had an effect on... (Read More)

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