Soy Farmers Bet Against Peso Just as Argentina Needs Cash
- Soybean growers who sold last year are now stockpiling
- Supplies tighten for crushing giants already facing Covid-19
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Decades of political and financial turmoil have turned Argentine soybean growers into shrewd currency traders. Right now, they’re betting the farm on a weaker peso.
Farmers’ sales of soy have slowed to a crawl because they see the currency as overvalued. Growing stockpiles are unnerving buyers such as Glencore Plc and Bunge Ltd. that crush the beans and ship out meal and oil for livestock feed and cooking. Hoarding also deprives the government of exports just as it battles to reach a $65 billion debt-restructuring deal.