The Argentine government’s announcement that it was planning to lower export taxes on soyabean oil and soyabean meal was expected to boost exports of those products, sources told AgriCensus.

In addition to the government’s announcement that the export duty on soyabean oil and soyabean meal would be reduced from 33% to 31% - a measure that was expected to be introduced four weeks after the 25 November announcement - a preferential exchange rate policy for soyabeans had been introduced, the 28 November report said.

Despite the introduction of the exchange rate policy, known as the “soya dollar” – which would run from 28 November to the end of the year – Argentine farmers were not expected to sell the same volume of soyabeans as they had in September, the sources told AgriCensus.

“We can expect another good round of farmers selling soyabeans but not at the pace of what we have seen in September during the first soya dollar period,” Anilkumar Bagani, research head at Mumbai-based vegetable oil broker Sunvin Group, told AgriCensus.

Meanwhile, traders believed that the combined effect of increased soyabean farmers sales and the reduction in export taxes on soyabean oil and soyabean meal was likely to benefit Argentina’s oil and meal exports.

“The most important thing [of the measures announced] is the reintroduction of different export tariffs in favour of sub-products,” head of the Latin America grains sales desk at HedgePoint Global, Maria Sol Arcidiácono, told AgriCensus.

Under the previous “soya dollar” scheme in September, Argentine farmers sold a total of 13M tonnes of soyabeans and, at the time of the report, held about 12M tonnes of unsold old crop soyabeans, the report said.

“Farmers are still unsure about the current weather conditions which has delayed 2022/23 soyabean sowing and unless weather conditions turn favourable, farmers’ selling of beans would be a touch slower,” Sunvin Group’s Bagani was quoted as saying.