MARKET DEVELOPMENT
11-03-2003
ARGENTINA SOY FALLS, MEETING ON PROTEST PLANNED
BUENOS AIRES, Argentina, March 10 (Reuters) - Argentine soybean pricesslid on Monday on high supplies that built up in ports during a farmsector protest last week, though strong demand from crushers kept pricesfrom falling as much as expected, traders said.The market returned to normal on Monday after a week-long protest inwhich farmers, grain firms, cooperatives and brokers stopped buying andselling grains and oilseeds to pressure the government to change taxpolicy.The protest did not affect the harvest or exports -- since ports usedtheir reserves to satisfy export requirements -- and trucks continued tomake preset deliveries to ports.Traders warned last week that the buildup of supplies of grains andoilseeds during the protest could have a negative effect on prices oncethe market returned to normal.Soy fell in the main soy-exporting port of Rosario to trade at 530 pesosper tonne ($168), from 540 pesos per tonne on Feb. 28, the last session inwhich the oilseed traded."Even though we predicted a big drop in price, that didn't happenbecause there is still very strong demand for beans," said a trader inRosario, where 20,000 tonnes of the oilseed sold."It is very clear that some crushers are in great need, so they wereunable to push the price down further," he said.Corn fell 15 pesos in Rosario to close at 520 pesos per tonne and thegrain traded at 230 pesos in Bahia Blanca."The market fell a lot, especially corn, because of the number oftrucks that delivered during last week and the big supplies," said thetrader.Some 60,000 tonnes of the grain were sold in Rosario, said the trader,who estimated that was the highest sales figure since the harvest began.Wheat traded 10 pesos lower at 350 pesos per tonne in Rosario andchanged hands at between 360 and 370 pesos in Bahia Blanca and Quequen.Mills in Buenos Aires paid 380 to 395 pesos for the grain.Sunflower seeds fell 15 to 25 pesos in Rosario to trade at 480 to 490pesos per tonne, while the oilseed traded at 480 pesos in Bahia Blanca.The groups that organized last week's protest want lower income taxrates, changes in the way value-added taxes are charged and want thegovernment to refund grain firms taxes paid locally on business doneabroad.Farmers and exporters are due to meet later this week to decide on anew course of action since they have not received any signal from thegovernment that it would meet their demands.The parties have not yet set a date for the meeting, said AlbertoRodriguez, a representative of the Argentine Chamber of Vegetable OilIndustries, which represents firms like Cargill Inc. and Bunge Ltd.
