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Bloomberg Línea — Tensions between the Argentine government and farmers have increased again after the Agriculture Ministry suspended the export of soybean meal and soybean oil, in order to evaluate an increase in the percentage of withholding taxes applied to such sales abroad. Soybean meal futures, a key component of animal feed, rose to a seven-year high following the announcement.
Grupo Bimbo, a Mexican bakery with a global presence, has suspended its operations in Russia, a market that represented 0.5% of its net sales in 2021. The decision also means a pause on all new capital and advertising investments in the country, following its invasion of Ukraine.
On the stock markets, Argentina’s Merval (MERVAL) index suffered the worst performance among its Latin American peers, affected both by the performance of U.S. markets and the soybean export suspension.
Brazil’s Ibovespa (IBOV) slid 1.60% while Mexico’s S&P BMV/IPC (MEXBOL) fell by 0.93%.
Following is a roundup of Monday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina:
- Tensions between the Argentine government and farmers have increased again after the Agriculture Ministry suspended the export of soybean meal and soybean oil, in order to evaluate an increase in the percentage of withholding taxes applied to such sales abroad. Soybean meal futures, a key component of animal feed, rose to a seven-year high following the announcement.
- State-owned oil company YPF (YPF) increased the price of its basic fuels by an average of 9.5% and its premium fuels by an average of 11.5% Monday.
Brazil:
- A more challenging scenario on the horizon, with potentially consistent inflationary pressures, has led investors to focus increasingly on defensive sub-sectors in the stock market. For Goldman Sachs, the food retail sector is one of them, with an emphasis on Assaí (ASAI3) shares, which, according to the bank, is one of the best sector names best positioned today on the Brazilian stock market.
Chile:
- Congress member René Alinco said he will only withdraw the bill allowing a fifth round of early withdrawals from pension accounts if President Gabriel Boric’s government raises the minimum wage to 500,000 pesos per month (about $600), according to Televisión Nacional.
- Recent gains in Chilean UF bonds could soon come to a halt as the market begins to reduce price expectations that, according to analysts, have gone too far.
Colombia:
- Centrist presidential candidate Óscar Iván Zuluaga pulled out of the race on Monday to throw his support behind former mayor of Medellín, Federico Gutiérrez, as a way of striving for national unity. The elections take place on August 7.
Dominican Republic:
- The real estate sector in the Dominican Republic is one of the sectors with the highest growth and economic momentum, having experienced a rebound in property sales in 2021, both off-plan and under construction, especially in tourism and residential projects.
Ecuador:
- Ecuador has completed the repatriation of its citizens from Ukraine with the third and final humanitarian flight carrying 190 passengers back to the country. In total, 606 Ecuadorians have now returned to Ecuador from war-ravaged Ukraine.
- The government is already calculating what to do with the extra income it will receive from the increase in the price of oil, According to the Ministry of Finance, every time the price of crude oil rises by $1, the country obtains between $48 and $50 million in additional revenues.
El Salvador:
- Six months since the entry of Bitcoin into El Salvador as legal tender, the cryptocurrency is losing its shine, according to analysts consulted by Bloomberg Línea. Despite this, the Central American country is now in fourth place worldwide in terms of number of crypto ATM, with 205.
Guatemala:
Mexico:
- Grupo Bimbo (BIMBOA), a Mexican bakery with a global presence, has suspended its operations in Russia, a market that represented 0.5% of its net sales in 2021. The decision also means a pause on all new capital and advertising investments in the country, following its invasion of Ukraine.
- Pemex’s annual net exports are enjoying one of their best moments since 2015, while the Mexican government analyzes modifying its fuel self-sufficiency policy in the face of the surpluse revenues it is receiving due to high crude oil prices.
Peru:
- With 76 votes in favor and 41 against, Peru’s Congress approved the admission of a motion to remove President Pedro Castillo, who will attend parliament on Tuesday to deliver a message to the Nation.
Uruguay
- The war in Ukraine has boosted the price of various raw materials, but also generated uncertainty regarding the supply of key agricultural inputs, including fertilizers. In view of the difficulties, the Uruguayan government appealed to the Brazilian authorities to agree to the joint import of such products, on the understanding that Brazil’s larger scale will facilitate access to the local market.
