March 12, 2008

Market speculates on 2-day closure of Argentina's grain export registry

Argentina has closed the grain export registry for two working days, the Agriculture Secretariat said in a notice to exporters late Monday (March 10, 2008).

The closure is to "implement operating procedures that will optimize the function" of the Registry of Sworn Statements of External Sales, the Secretariat said.

This meant there would be no new export commitments of soy and its derivatives along with corn, wheat and other grains for that duration.

Local press reports speculated that the closure was in anticipation of another increase in the export tax on grains.

On Nov. 7, the government raised the export tax on soy to 35 percent from 27.5 percent, and the tax on soyoil to 32 percent from 24 percent. Wheat export taxes were raised to 28percent from 20percent, while the tax on corn rose to 25 percent from 20percent.

On Feb. 28, Argentina extended the closure of the wheat export registry, preventing any shipments before April 8. Previously, the government had said it would allow wheat exports starting March 17.

Exporters must register export commitments with the government before being allowed to ship grains.

In January, the government announced that an additional 2 million tonnes - or 400,000 tonnes per month over the next five months - would be made available for export, but has repeatedly put off actually accepting export commitments.