Argy update

[Klause]

My uncle finished Bean harvest on Weds.

Yield was 61 bpa average so he's happy.

Every last bhushel hauled direct to Port. Trucking/basis/export tarrifs (didn't quite eliminate all of those yet on beans) works out to $48/ metric tonne off of US price.



Wheat is going in and corn is two weeks away sunflowers a little more.


Argy is going to be wall to wall wheat this winter. Good moisture and early harvest means very few if any fallow acres.

Lots of changes to their grading system including #1/#2/#3 system like ours for high quality wheats and then the standard class is the same as usual.


Wheat prices on BCR are the highest they have been in 4-5 years which is pushing for higher plantings and farmers are trying to make up lost profits from beans on wheat.


Ya don't wanna know what canola is fetching on the domestic market down there.

[LWeber]

Argentina's central bank has raised interest rates for the third time in eight days as the country's currency, the peso, continues to fall sharply. On Friday, the bank hiked rates to 40% from 33.25%, a day after they were raised from 30.25%. A week ago, they were raised from 27.25%. The rises are aimed at supporting the peso, which has lost a quarter of its value over the past year. Analysts say the crisis is escalating and looks set to continue.

[wmoebis]

Quality wise compared to Canada's classes where would it fit in. CGC says they have no idea of where quality class Black Sea wheat would fit. Too many variables hard to believe.

[Klause]

Quality wise compared to Canada's classes where would it fit in. CGC says they have no idea of where quality class Black Sea wheat would fit. Too many variables hard to believe.

Their high grade is equal to CWRS or they are marketing it as such.

Low grade would be GP

[Crestliner]

How do they function in high interest rate environments.

[Bowerpower]

How do they function in high interest rate environments.

Farming is so good down there, they don’t need banks. Cash cash cash.

[hobbyfrmr]

How do they function in high interest rate environments.

They must be making good money on deposits. Sell the grain, turn it into cash, put it in the bank and make interest money even while sleeping. Cash deposits dont heat, spoil, downgrade, harbour insects.
I would not want to be borrowing money in Argentina.

[farmaholic]

Didn't Klaus or someone say there were interest rebates?
It better be a partial exemption because the capital needed to pay the full shot at those interest rates and wait for the rebate would be tough.
I remember getting an interest rebate in the mid to late eighties when I first bought land.....back in the days when a Saver's money would work for him.

Those rates seem unbelievable.

[Klause]

Didn't Klaus or someone say there were interest rebates?
It better be a partial exemption because the capital needed to pay the full shot at those interest rates and wait for the rebate would be tough.
I remember getting an interest rebate in the mid to late eighties when I first bought land.....back in the days when a Saver's money would work for him.

Those rates seem unbelievable.

Ag interest rebates are intrinsic. I e a farmer gets a loan for equipment he pays 10% a regular Joe bloe pays 42%



In a high inflation country you do not turn things into cash...


However the inputs you bought in spring are 20% cheaper by the next spring because of inflation.


It's why you comit a % of production for inputs instead of money in many cases.

Whole different world and economic system.

[farming101]

Savings in the currency of the nation is not a money maker. Inflation cancels out the income

[farmaholic]

Savings in the currency of the nation is not a money maker. Inflation cancels out the income

What was the inflation rate in Western Canada from about 1985 to 1992?

[farming101]

What was the inflation rate in Western Canada from about 1985 to 1992?

About 4.25% per year

[farmaholic]

About 4.25% per year

I think GIC rates were about 10-11% then, I had some RRSP GICs and after they matured it was all down hill after that.

[Klause]

About 4.25% per year

Real inflation or the fake stuff posted as the CPI?


Canada, and indeed a lot of western nations "fake" their inflation numbers by leaving out important vectors, or using fake math.

I.E. The cost of housing in Toronto went up 37% in the past decade according to Stats can, but in actuality, even with conservative math it went up 140%.


Makes a huge difference.


What was a new 140HP john deere FWA tractor in 2000, and what is that tractor today as far as cost to buy?

[farming101]

Real inflation or the fake stuff posted as the CPI?


Canada, and indeed a lot of western nations "fake" their inflation numbers by leaving out important vectors, or using fake math.

I.E. The cost of housing in Toronto went up 37% in the past decade according to Stats can, but in actuality, even with conservative math it went up 140%.


Makes a huge difference.


What was a new 140HP john deere FWA tractor in 2000, and what is that tractor today as far as cost to buy?

I know, garbage in garbage out

Probably as good an indicator as any is the availability of goods
A large percentage of the population spends most of their income on consumption. As long as people can readily get what they need and pay for it with the nation's currency you have a functioning economy.
No two consumers are the same either. So, some care what the price of a new tractor is others don't. Some buy a new car and spend less in a year on financing it then they do on cigarettes. It's complicated