Argentine producers have been holding onto crops as a hedge against inflation and a deflating currency. Rumors have been circulating the country could lower taxes on exports of soybeans and soy products to help spur exports and generate needed export revenue. Today, a local industry source told Reuters the Argentine government will announce it will lower export taxes on soybeans and soymeal from 33% to 30% through year-end. The tax would go back to 33% in January, according to the source.
The country’s economy ministry has called a news conference for 8:00 p.m. CT today where it is expected to announce a series of new economic measures. Argentina’s economy had already been struggling, without the added challenges of a global pandemic.
The source said the government has not been working with the farm sector in making these plans and will move unilaterally. The Argentine Rural Confederation, a major growers’ organization, says it has not been involved in any such talks.