Bullish cereal combo world market - Beyond the Argentine situation, these days wheat prices register high levels in all supplier countries, due to immediate factors, such as the water crisis that adds up to the third consecutive year in Australia, but also due to the forecast of a 2020 cycle / 2021 with less supply in the northern hemisphere.

For example, on Friday the USDA relieved the planting of winter wheat from the United States (harvested since June) on 12.47 million hectares, the lowest area since 1909 and the second worst historical mark. In the European Union (EU), meanwhile, the implementation in the main producers (France and Germany) was restricted by an excessively humid climate. And in Russia, on the other hand, a dry and warmer winter than usual raises questions about the fate of crops.

Bullish cereal combo world market

Yesterday the March position of wheat on the Chicago Stock Exchange rose US $ 2.30 and closed with a price of US $ 208.89, the highest in six months. Regarding the EU, the Reuters agency indicated that the value of the cereal reached the highest level in a year, due to strong external demand.

In the domestic market, the export again offered US $ 190 per ton of wheat for Rosario and for Bahía Blanca, but the FOB value in the local ports climbed from 218 to 230 dollars, after closing last week at US $ 211, data that marks the strong interest of the external market for the Argentine grain.

Martín Zuppi: "Normal interest rates are necessary"

"Normal" interest rates for Argentina, between 20% and 25%. With this small advance, among others, Martín Zuppi, general director of Fiat Chrysler Automobiles (FCA), is confident that the automotive market can find the "light at the end of the tunnel", that is, a small reaction.

However, despite observing a "healthier" beginning of 2020 than last year, the company's outlook for this year is still pessimistic, below those of 2019. Zuppi claims to think with the Government of the complex situations that savings plans live after devaluations, believes that car prices are still late and says that, beyond the exchange rate, it will be necessary to promote a "state policy" to align necessary structural changes when thinking about the competitiveness. In addition, he warned about delays in imports.

-What are FCA perspectives for 2020?

-The last year was complex. Devaluations, consumption shrinkage, interest rates of more than 60 points. We had to "de-stock", we had eight months of accumulated stock, and that is done based on blood. Faced with all that, we start now with a tidier margin. We are seeing for this year a market of 410,000 cars, a little below that of 2019. We do not see a variable that indicates reactivation. We should see a realignment of interest rates coming. Normal interest rates are required for this market, between 20% and 25%. The market also needs credibility. Confidence that you will be able to pay a fee in the future.

-What will they do with the savings plans? Are they going to help subscribers with problems?

-This is a fundamental problem. Freezing the quota is an aspirin. The culprit was the exchange rate. There has to be a job with Adefa, Acara and the Government. Perhaps a line of credit to compensate for the differences generated.

-What do you expect from Brazil?

-We see that Brazil can have some growth this year. The one he promised, but he didn't have last year. We need it to improve the fixed costs of the plant and the profit margins. The devaluation makes you competitive, but if you do not raise costs in dollars. If not in three months you eat the devaluation. We believe that we will produce some 10,000 Fiat Cronos more for that market this year.

-How do the stocks and the dollar affect your investments?

-We have no planned investments in the short and medium term. For the market, any type of economic restriction is a problem.

-How are the prices of cars today?

-As everyone in the market, we have late prices. But I think the price is much more controlled with a stable exchange rate. We still have vehicles with negative margins and there will be some rearrangement.

-How does the current tax pressure affect you?

-Internal taxes touch us only in some versions of Jeep and Toro. Hopefully it will be updated and that the exchange rate does not trigger. Now, we must take measures that encourage export and have state policies to improve competitiveness.

- Were there delays in the approval of imports?

-We had problems. We hope it does not happen to adults.