Expoagro Kicks Off Amid Grain Price Concerns and Anticipation for Javier Milei’s Visit

The upcoming Tuesday marks the start of a new edition of Expoagro, the country’s premier agroindustrial exhibition, held at its permanent location in San Nicolás. The event will run until Friday the 8th.

The fair will host more than 600 exhibitors, including 130 new companies making their debut. Visitors can expect to see demonstrations at 12 different plots, and more than 12 public and private banking entities will offer special financing for the expo. The event space has been expanded by 8,000 square meters from the previous year to accommodate these features.

There is speculation about a possible visit from president Javier Milei following a controversial attempt to increase withholding taxes. Although unconfirmed, if he does attend, it would be on Tuesday around noon, following the traditional ribbon-cutting ceremony.

Government official Fernando Vilella, the Secretary of Agriculture, will be attending and meeting with the ministers of the Southern Agricultural Council (CAS) during the exhibition. This will be their first meeting of the year, and will include ministers from Brazil, Uruguay, Paraguay, Chile, and Bolivia. Minister of the Interior, Guillermo Francos, has also confirmed his attendance.

Several governors, including Axel Kicillof, Maximiliano Pullaro of Santa Fe, Martín Llaryora of Córdoba, and Rogelio Frigerio of Entre Ríos, are expected to visit the exhibition, although the dates of their visits are yet to be confirmed.

The expo is taking place in a significantly different production context compared to last year, which was characterized by drought and a steep decline in production. This year, a significant recovery in corn and soybean crops is anticipated, with respective yields of 56 and 49 million tons, potentially revitalizing this strategic sector.

This recovery is expected to stimulate the economy, leading to increased investments by producers. According to Abeceb Consulting, agricultural machinery sales are projected to grow by 14.6% this year, surpassing 20,700 units after a 41% drop in transactions in 2023.

However, there is uncertainty about the future of international grain prices, which have been falling this year due to oversupply. Since January, prices have fallen nearly 15%, hitting a three-year low.

Grain, oil, flour, and derivative exports are projected to reach US$ 31.3 billion for the 2023/24 campaign, a decline of US$ 4.5 billion from December estimates, according to the Rosario Stock Exchange. This figure was also influenced by reduced production resulting from a heatwave between late January and early February.

Locally, prices have also seen a significant drop. Since mid-December, the real value of the Rosario Slate has fallen by an average of 35%, with soybeans and corn hitting their lowest value since August 2023.

In light of these circumstances, producers are delaying sales and holding onto their merchandise, awaiting potential changes in grain prices and the overall macroeconomic situation in the country.

The exhibition serves as an ideal platform for various company launches. This year, Valtra will launch the R Series Sprayer, while Metalfor will present its latest work in autonomous driving. Indecar is also set to launch the Phantom 7200 self-propelled pneumatic fertilizer at Expoagro, promising to increase productivity with its autonomous operation and wide working range.