Buenos Aires, April 29th. Exporters had a quick reaction facing to the rumors saying that the Government wants to change the current export tax scheme.  Like in August 2018, previous to the re-imposing of the export taxes, grain companies accelerated its registration of export operations (Foreign Sales Export Declaration or DJVE in its Spanish acronym).

Versus 8.2 million metric tons of grain registered to export in April 2018, to this Friday 26th April 2019, exporters registered 14.1 million metric tons of grains. But this was not the result of a larger harvest because half of that volume (7.5 MMT) was registered during the last week.

As local currency (peso) continues depreciating against the dollar, and Argentine economy deeps its recession, a rumor about an increase of the export taxes begun to circulate into the farming sector. In August 2018 the President Macri’s administration imposed AR$4 duty per dollar exported. As the exchange rate rounded AR$40 per dollar, the export tax represented 10% of the value. But this Autumn dollar climbed to AR45/47, liquefying the tax to 8% of the export value.

Then, the Government would be thinking to modify the tax to a ratio of the FOB value, for example, 10 percent, although some people well informed not discard that this ratio finally reaches 12 percent. Sources from the Production Ministry denied this rumors, but a year ago they did the same, previously to the reimpose of the export taxes.

In the last week (April 22 to 26th), exporters register 3.2 million metric tons of corn, 2.21 MMT of soybean meal, 674K tons of wheat, 490K tons of soybean and 271K tons of soybean oil.

“Friday 26th grain prices at the local futures markets dropped 2.5 to 3 percent, in response to the eventually increasing of the export taxes. Clearly, exporters are covering themselves against a new export taxes scheme. But additionally, exporters registered more grain operations”, grain markets analyst Pablo Adreani said.