Swinging soy.(Out Of The Box)(soy trade)(Brief Article)

Argentina's trade balance is rosy, at least for now. Imports are projected to recover following an abysmal drop after the 2002 devaluation. Exports, meanwhile, are expected to continue to surge, thanks to the country's decision to drop its policy of maintaining the peso one-to-one with the U.S. dollar. U.S. trade officials note that Argentine exporters are shunning traditional products such as grain and cattle for soybeans. Though revenues from soy should be healthy in the near term, experts warn that reliance on the legume could make Argentina vulnerable to swings in international demand. Meanwhile, Argentine industrial exports struggle, due to restricted access to capital and flagging demand from traditional trading partner Brazil.

[GRAPHICS OMITTED]

Print Get the Mag Weekly Updates