News

Proposed policy updates might affect grain movement in Argentina

A senior market advisor with Total Farm Marketing says currency and trade tax adjustments proposed by a newly elected leader in Argentina could make the country’s commodities more competitive globally.

Naomi Blohm says Argentina’s new president wants to lower the value of the peso and adjust export taxes, but it’s unclear how that would happen.

“There are a lot of new policies that could potentially happen there. I don’t think it’s something that happens overnight, but I think the entire industry is trying to wrap its head around what might or might not happen.”

Last year, Argentina’s crop production was cut in half due to the drought. Blohm says normal production is expected this year, but Argentina doesn’t have anything to sell to the world until harvest begins in mid-to-late March.

“Now, there’s talk with this new president when they start to plant wheat, there might be an increase in wheat due to some of his policies.”

Argentina is the world’s leading exporter of soybean products and the third biggest exporter of corn.