Each year, Bolivia’s economic and political landscape seems to grow more complex. There has been ongoing social tension and unrest due to lack of fuel and double digit inflation, especially in the running up to the elections earlier this month (17th August).
Because the first round of voting did not produce a majority winner, the country now heads toward a runoff in October between Rodrigo Paz (centrist) and Jorge “Tuto” Quiroga (conservative).
The left-wing MAS party suffered a historic defeat, securing only 11% of the vote (Rodríguez 8%, del Castillo 3%). Roughly 19% of ballots were invalid or null, largely due to MAS supporters following Evo Morales’ call to boycott. This result means Bolivia will not see a left-wing government for the first time in over two decades.
On the trade side, shippers have been steadily selling off their final balances for the year and are now winding down. It appears there will be a long wait until the new crop starts shipping, even though many factories aim to reopen as early as possible, with most targeting December.
Any remaining balances offered are being sold quickly. While demand is low overall, there is still consistent interest in covering needs up to the new crop, especially from the U.S.
The spot market remains active, with limited stock available.