Hugh's Feed
Apr 10, 2014

Chevron, YPF boost spending to develop Argentine shale

NEW YORK/BUENOS AIRES, April 10 (Reuters) – Chevron Corp
and state-controlled YPF SA plan to spend an
additional $1.6 billion to develop Argentina’s Vaca Muerta shale
formation further, boosting plans for new wells this year and
announcing fresh exploration projects.

The project, announced on Thursday, will help Chevron boost
its oil and natural gas production, which has been stubbornly
flat the past few years despite annual global capital spending
of around $40 billion.

Mar 27, 2014

Argentina posts 3 pct growth in 2013, dodges GDP warrant bullet

BUENOS AIRES, March 27 (Reuters) – Argentina said on
Thursday its gross domestic product expanded 3.0 percent last
year, below the 3.22 percent level that would have triggered
about $3.5 billion in payments to holders of GDP bond warrants.

Warrants trading in the secondary debt market fell up to
13.7 percent after the government announced the figure.

Mar 24, 2014

Record Argentine soy crop to pump exports despite hoarding

BUENOS AIRES (Reuters) – Argentina will put downward pressure on world food prices by exporting more soy this year, even as growers hedge against the country’s dysfunctional financial system by hoarding a bigger chunk of what is expected to be a record high crop.

The biggest harvest ever seen on the Pampas farm belt started last week, setting the stage for increased exports from the world’s No. 3 soybean supplier. The size of the expected crop increase will at the same time allow growers to stockpile a larger percentage of the crop than last year.

Mar 17, 2014

Argentina inflation rate slows to 3.4 pct in February

BUENOS AIRES, March 17 (Reuters) – Argentina’s inflation
rate slowed to 3.4 percent in February, the government said on
Monday, the second monthly reading of a new consumer price index
that came in far under expectations and left analysts with
continued doubts about accuracy.

A month ago, the government reported 3.7 percent inflation
for January. That was the first reading under a new measuring
system meant to improve long-discredited official data in
Argentina, Latin America’s No. 3 economy.

Mar 17, 2014

Argentina inflation rate slows to 3.4 pct in February

BUENOS AIRES, March 17 (Reuters) – Argentina’s inflation
rate slowed to 3.4 percent in February, the government said on
Monday, the second monthly reading of a new consumer price index
that came in far under expectations and left analysts with
continued doubts about accuracy.

A month ago, the government reported 3.7 percent inflation
for January. That was the first reading under a new measuring
system meant to improve long-discredited official data in
Argentina, Latin America’s No. 3 economy.

Jan 27, 2014

Argentina braced for first day under relaxed forex controls

BUENOS AIRES, Jan 27 (Reuters) – Argentina’s sudden
relaxation of currency controls, long touted by the government
as essential to the country’s financial health, has left
investors wondering what’s next for Latin America’s crisis-prone
No. 3 economy.

Shopkeepers around the country hurriedly placed new price
tags over the weekend on imported items from Cuban cigars to
Asia-made televisions, reflecting a more than 20 percent drop in
the official peso rate over recent days.

Jan 24, 2014

Argentina surprises markets by relaxing currency controls

BUENOS AIRES, Jan 24 (Reuters) – Argentina said on Friday it
would relax currency controls it had long defended as essential,
a policy reversal forced by high inflation and a sharp fall in
the country’s currency.
The peso currency’s official rate has fallen 20 percent
against the dollar so far this month, pressuring inflation even
higher as confidence falls in Latin America’s No. 3 economy.
The surprise policy shift was announced at the end of a week
in which central bank reserves had fallen to under $30 billion,
a level suggesting the bank’s interventions in support of the
anemic peso had become unsustainable.
A day after the peso had its hardest drop in more than 12
years, Cabinet Chief Jorge Capitanich said Argentina would
reduce the tax rate on dollar purchases to 20 percent from the
current 35 percent and allow the purchase of dollars for savings
accounts, measures that would go into effect on Monday.
He said the move “reflects the government’s belief that in
the context of a floating exchange rate, the price of the
currency, i.e. the dollar, has reached an acceptable level.”
Analysts said the government was forced to abandon one of
its signature policies due to its inflationary consequences as
consumer prices are expected to rise by 30 percent in 2014.

The currency controls had largely backfired by fueling a
scramble for dollars on the black market, which in turn
contributed to one of the highest inflation rates in the world.
The spike in inflation has revived memories of the country’s
2002 financial crisis that threw millions of middle class
Argentines into poverty.
Auto dealers have stopped selling new cars because inflation
expectations are so volatile that prices are difficult to set.
The price of household appliances shot 20 percent higher between
Thursday night and Friday morning after the peso’s Wednesday and
Thursday plunge.
Stores were nonetheless full of buyers eager to lock in
prices before they rose still further.
Latin American currencies slumped Friday in part due to
worries over a looming foreign exchange crisis in Argentina.

Jan 23, 2014

Fast-dropping peso spurs Argentine soy farmers to hoard beans

BUENOS AIRES (Reuters) – Argentine soy farmers have lost faith in the country’s currency and are hoarding beans even as prices are expected to be weighed down over the months ahead by heavy global supply.

The country is the world’s top exporter of soymeal and soyoil as well as its third biggest soybean and corn supplier at a time of booming food demand. But, as inflation soars and confidence falls in Latin America’s No. 3 economy, a bean in the bag is better than a peso in the bank for local farmers.

Jan 14, 2014

Analysis – Argentine corn crop slammed by drought; harvest estimates wither

BUENOS AIRES (Reuters) – A three-week drought that parched Argentina’s Pampas farm belt in December is quietly wilting this year’s corn crop estimates for the South American grains powerhouse and will likely nudge world food prices higher.

Local traders and analysts have cut their harvest estimates for this season to the 18 million to 25 million tonne range, way under the prediction offered by the farm minister just a month ago of more than 32 million tonnes.

Jan 9, 2014

Rains help Argentine crops after drought that hit corn yields

BUENOS AIRES, Jan 9 (Reuters) – Argentina’s dry, hot
December, which caused yield damage to the country’s budding
2013/14 corn crop, has given way to a wet January and forecasts
of a wet February that should ensure a healthy soy harvest,
experts said on Thursday.

The South American grains powerhouse is the world’s No. 3
exporter of both crops, and the top supplier of soymeal animal
feed at a time of booming demand from China. Weeks of
drought-like December weather took an irreversible toll on corn,
while 2013/14 soy, which is planted later, escaped extreme
damage.