BUENOS AIRES: Argentina’s grains sector is set to resume its exports of soybeans and byproducts once the government formalises a tax cut it announced over the weekend.

This is according to the country’s Ciara-CEC grains processing trade association.

Exports in the world’s top supplier of soy-based oil and meal came to a standstill on July 1 when a temporary tax reduction came to an end, Ciara-CEC president Gustavo Idigoras told Reuters on Monday.

However, President Javier Milei on Saturday announced a permanent tax cut on exports of soybeans and their byproducts to 26% and 24.5% respectively, from current levels of 33% and 31%.

The measure will come into force once it is published in the country’s official gazette.

Idigoras said foreign sale declarations, known as DJVEs, have been “virtually paralysed” as of July 1, but they should resume once the decree is published.

Government spokespeople did not immediately respond to requests for comment on when this would happen.

Argentinan farmers had, as of mid-July, sold 52% of a 50.9-million-tonne 2024/25 soybean harvest, according to government data, including 1.05 million tonnes in the first two weeks of the month.

This was less than half the 3.27 million tonnes sold in the last two weeks of June, when farmers shifted large volumes before the initial temporary tax cut ended.

Idigoras said he expected sales volumes to improve, but not to the levels seen at the end of last month.

Independent analyst Lorena D’Angelo said companies now had solid reserves of grains after trading peaked at the end of June.

“There will be neither a flood of sales on the part of producers, nor a flood of need on the part of exporters,” she said. — Reuters