A new report from Coninagro indicates that Argentine producers of wheat and yerba mate are currently facing a significant reduction in purchasing power due to falling prices, while commodities like soy and cattle have improved their purchasing dynamics. The report reveals that wheat has seen a marked deterioration in both its market price and input costs. For instance, costs associated with logistics have skyrocketed, with transport costs now consuming up to 21% of the value of wheat for a typical 300-kilometer journey, the highest recorded in recent years.

In contrast, the cattle and soy markets have shown resilience, with cattle prices improving by 25% and a notable decrease in the quantity of soy needed to purchase essential inputs like glyphosate and transportation services. This disparity highlights the varied economic pressures experienced across different agricultural sectors in Argentina, prompting concerns over the sustainability of certain crops like wheat and yerba mate, which are staples of the Argentine economy.

The findings of this study emphasize the need for strategic adjustments among local farmers and stakeholders to navigate these economic challenges. The shifting dynamics in commodity prices could reshape agricultural strategies in Argentina, ultimately impacting food supply and economic stability for producers reliant on these key agricultural sectors.