May 16, 2008

Argentina blocks new grain export commitments for 15 days

Argentina's government has transferred control of approving export declarations from the Agriculture Secretariat to the Agricultural Trade Office, or ONCCA, and will not accept new export declarations for 15 days, the corn association, Maizar, said in a press release Thursday (May 16, 2008).

ONCCA informed grain exporters that it will take two weeks to develop the new regulations covering grain exports and that no new declarations will be accepted in the meantime.

Exporters must make a sworn declaration to the government of an export sale before shipping goods.

Argentina's new wheat exports have been blocked since November while beef exports have been virtually shut down since April.

Even as the corn and soy harvest are in progress, farmers on strike are blockading roads leading to ports, choking off grain exports.

A wave of export contract defaults next week is expected as grain stocks dwindle.

Farmers are set to meet Thursday to decide if they will continue the blockades.