Argentina 2008-09 soy area seen 5 percent larger

The US Department of Agriculture forecasts a 5 percent increase in soy planted area for 2008-09 and a 5 percent increase in sunflower planted area.
 

Although the Argentine government removed the variable export taxes established in March, news reports indicate that the new Secretary of Agriculture, Carlos Cheppi, is analyzing a project to increase the current fixed export tax on soy from 35 to 40 percent, while lowering the taxes on wheat and corn to 23 and 20 percent respectively. No details have yet been confirmed on the status of this project, but producers and farm leaders are reportedly extremely concerned about this project.

Exporters have voiced much concern about Resolution 543/2008, promulgated by agriculture trade office ONCCA last May, which requires grains and oilseeds to be loaded within 45 days after receiving an approved export certificate. Press reports on August 1 indicate that the Argentine oilseed processors' group (CIARA) and the grain exporters' group (CEC) met yesterday with ONCCA President, Dr. Ricardo Echegaray, to request a revision of this regulation.

The USDA forecasts 2008-09 soy planted area to increase to 17.7 million hectares, a 5-percent increase over last year's level. Production is expected to reach 49.5 million tonnes as a result of the larger area. These increases are expected mainly due to drop in planted area for corn and wheat which will largely be shifted into soy.

Exports of soy for 2008-09 are expected to reach 12.5 million tonnes. Post expects 2008-09 crush to increase to 37.6 million tonnes, which will generate a production of 29.3 million tonnes of soymeal and 7.215 million tonnes of soyoil. Exports of those products are expected to increase slightly due to the higher production levels and stable domestic consumption.