Argentina is one of many countries who’ve moved to protect their domestic market. With suspension of export registrations for meal and oil, due to talk of a pending increase in taxes, global prices of soybean meal have climbed to the highest level in more than seven years.
Brazil is the world’s biggest exporter of soybeans, a key ingredient in animal feed, but Argentina is the largest shipper of soybean meal and oil. The Argentine government typically puts a block on the export register before increasing taxes on shipments, in order to stop farmers from pre-empting the hike with a flood of selling.
Other nations that have imposed trade curbs on farm exports ranging from grains to cooking oil include Hungary and Indonesia.
Wheat and cooking oils have just reached record highs amid a broad surge in commodity prices, pushing food costs to the highest ever. This is as governments take steps to safeguard local supplies.
The UN’s Food and Agriculture Organization expects food costs to hike up a further 22%. That said, wheat fell on Monday as traders weigh future supplies of the food staple against demand that may be rationed by high prices. Corn also declined, though soybeans edged higher, buoyed by the Argentine move and prospects for lower South American harvests because of drought.
LSL News.