November 20, 2006

Argentina closes export registry for grains

Argentina has closed the export registry for grains, oilseeds, and subproducts, according to Roagro analyst Carlos Boglioli.

"Sources from the exporter sector have confirmed that the Agriculture Secretariat closed all the registries," Boglioli said in an email announcement.

All Argentine agricultural exports must be registered for export and a reference price is fixed based on the day of registration. The export tax is fixed based on the reference price set on that day. Agricultural export taxes vary by product, but are generally around 20 percent of the FOB export value.

Declared exports of wheat and corn have reached unprecedented levels as exporters have raced to lock in FOB reference prices and export commitments amid uncertainty regarding government intervention to limit exports to control domestic food prices, according to analysts.