The Argentine government has suspended registration of soybean oil and meal exports
Argentina, the world's largest exporter of soybean oil and meal, has suspended registration of export sales of these products. According to Reuters, the government on Sunday announced the suspension of sales and exports of the 2021/22 season, although physical shipments have not yet taken place because soybean harvest has not begun.
Against the background of this news, soybean meal futures in the US rose by 2.2%, while soybean oil fell by 1.26%.
According to the shipping agency NABSA, in 2021 Argentina exported an average of 1.5 million tons of meal and 300 thousand tons of soybean oil per month. According to the US IAU, in 2021/22 MY the country's share in world exports of soybean meal will be 41% and soybean oil - 48%.
The Deputy Minister of Agriculture of Argentina said that the export registration of soybean oil, meal and other related products will be stopped immediately on the eve of the 2021/22 MY harvest, which will begin in the coming weeks. According to government estimates, almost 5 million tons of soybean oil and other by-products from the 2021/22 soybean are currently officially registered for export.
Argentina's Chamber of Processors and Exporters of Oilseeds CIARA says the government has suspended export registration in order to increase export duties by 2%. "This is contrary to the country's export interests, will negatively affect foreign exchange earnings and employment in the agricultural sector," CIARA said on Twitter.
The government's statement on export duties does not say so, although the issue has long been straining relations with farmers and exporters. The government, which has significant debts, needs foreign exchange earnings and tax revenues from the sale of soybeans, which are Argentina's main exports, Reuters reports.
At present, Argentina's duty on exports of soybean oil and meal is 31%. According to forecasts, in 2021/22 MY the country will harvest 40-42 million tons of soybeans, although at the beginning of the year crops were severely affected by drought.
