Argentine Tax Changes May Not Help Pulses
BUENOS AIRES - Dec 1/15 - SNS -- Changes which will affect Argentina's posture in export markets are coming, but the impacts on pulse trade could take longer to materialize because of the challenge of freeing exchange rates.
By contrast, grain and oilseed markets will see some immediate impacts of the change in government, with incoming Agriculture Minister Ricardo Buryaile saying export taxes on wheat and corn will be abolished effective December 10, while the export tax on soybeans will be reduced in stages.
At the moment, the export taxes total 23% on wheat, 20% on corn, and 35% on soybeans. After December 10, they will be zero on corn and wheat, but only drop five points to 30% on soybeans.
There is considerable optimism the changes will pull land back into grains and oilseeds.. One economist believes corn area could jump one million hectares in 2016, while wheat seedings could also increase.
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