|
| The Argentine farmers weren't storing soybeans because of high taxes. They we're storing soybeans because inflation is running close to 40% in Argentina and they are an inflation hedge as soybeans are priced on the export market in dollars.
What I've seen this year is the increased reliance on crushers and exporters on DP beans. It's a fairly new concept in Argentina and has hugely increased farmer selling so far this year with 12,000 trucks waiting to unload soybeans this year versus 5,000 at this time last year. They "sell" the soybeans in dollars but don't fix the price of the soybeans in Argentine Pesos (it's against the law to actually sell them in US dollars) until the farmer tells them to so it's a great way to get around the silo bags and still hedge against inflation.
The farmers in Argentina and the current president have very poor relations to anyone is going to be an improvement versus the current president when it comes to farmer relations. Don't look for the next president to lower export taxes much as export taxes on the soyplex are currently the second largest source of income for the Argentine government. The government is broke and needs the income.
| |
|
Argentine President out in fall?
