Argentina's reforms to benefit corn, wheat exports but at expense of soy
Soybean plantings in Argentina could be overshadowed by rising cultivations of wheat and corn in light of the end of the country's restrictions – known as Register of Export Operations (ROEs) - on grain and oilseed exports in late December last year.
Farmers are expected to switch to corn and wheat away from soybean, with the liberalisation of exports lifting prospects for shipments of all major crops, at least in the next few months, according to the USDA's Buenos Aires office.
"This policy change will present producers and exporters a more predictable and stable situation in the flow of agricultural exports," the bureau noted.
Soybean cultivations and output could be significantly affected by the rise of other crops that offer more benefits for plantings, the USDA said.
Even then, there remains a potential for a planting record of 20.7 million hectares for soybeans in the 2015-16 season, Agrimoney reported. Despite current reforms, soybean is not observed to be declining in sowings and in fact anticipated to rise by 100,000 hectares for this year.
Grain exports recently obtain a boost from the measures of Argentine president Mauricio Macro, with measures resulting in the abrogation of export taxes on wheat and corn, a reduction of soybean tariffs, and the floatation and subsequent devaluation of the Argentine peso, leading to more competitive exports.
The ROEs will be replaced by a new system to monitor deliveries through mandatory reporting which do not require government pre-approval.