March 27, 2020

 

Argentina's grains port workers urge the government to suspend exports due to COVID-19

 

If approved, the measure will pressure global prices for soy and affect Argentina's main revenue source, reported Reuters.

 

Argentina's URGARA union, comprising inspectors that check grain quality before being shipped, urged the government to stop port activities in the country for 15 days due to COVID-19.

 

Argentina is the biggest exporter of soymeal purposed for livestock feed and third biggest supplier of raw soybeans and corn.

 

Pablo Palacio, URGARA chief said in an open letter to Argentine President Alberto Fernandez that foreign trade should only be allowed for activities that cannot be deferred. 

 

If Argentina stops port activities, it may shift world commodity trade flows. Importers could switch to Brazil or the United States for supplies.

 

Growers based in Argentina's Pampas farm are against a move to close ports.

 

COVID-19 has come at a bad time for Argentina, at the same time as harvest season plus the government is rushing to avoid defaulting on its debt of US$100 billion.

 

According to the Buenos Aires Grains Exchange, Argentina is projected to harvest 50 million tonnes of corn and 52 million tonnes of soy this season.

 

The exchange said 4.6% of soy area has already been harvested with an average 3.8 tonnes per hectare yield.

 

Sources in the industry said soymeal factories weren't getting enough supply as municipal governments closed roads, preventing grains trucks from moving through jurisdictions.

 

The government later exempted these trucks from nationwide preventive isolation orders as these supplies were related to foreign trade.

 

-      Reuters