https://x.com/alashkarsally/status/1703900063271878661?s=46&t=W0c_YnawH1HJ6oomt0mfxQ

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🌾 Russia first in wheat exports for second straight year

Second consecutive strong wheat harvest strengthens Russia’s position as No. 1 exporter while easing price pressure on markets.

Overflowing Russian grain ports have brought wheat consumers affected by the cost-of-living crisis a positive result: the lowest prices in almost three years.

Prices in the Chicago market are now less than half of the peak reached after the Ukrainian conflict began.

“There are not a lot of competitors for Russian wheat,” said Hélène Duflot, a grain-market analyst at Strategie Grains. “Russia is the price maker at the moment.”

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🇦🇷 The IMF grip is set to tighten

Argentina and the International Monetary Fund have had a rocky history, and it appears that things may deteriorate further.

Just five years ago, Argentina became the largest debtor to the Washington-based lender, receiving $57 billion in aid. Unfortunately, the program failed to revive South America’s second-largest economy.

At present, the government has been unable to meet the economic targets set by the IMF.

This has led to mounting pressure, with analysts suggesting that the IMF should adopt a tougher stance when a new government takes office after the October elections.

“No matter who wins after the vote, the IMF should insist that the government either bite the bullet – or otherwise the Fund should pull the plug on its support,” said Mark Sobel, a former US representative at the IMF.

Javier Milei, who emerged as the frontrunner in last month’s primary election, is in favor of dollarizing the economy and believes that the IMF should push Argentina to reduce its primary budget deficit to 1.9% of GDP by 2023.

However, even if Milei wins the October 22 election and assumes power in December, he will need the support of a united congress to pass reforms and implement a new IMF program.

Meanwhile, economy minister Sergio Massa, the presidential candidate of the center-left Peronist coalition, pledged this week to exempt millions of workers from income taxes shortly after receiving new IMF funds. This move could further strain Argentina’s already tense relationship with the fund.

Hence, after the elections, the new president will not only have to address domestic issues but also find a way to negotiate with the powerful lender, which is increasingly dissatisfied with the current policies.

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