bare shelves

FILE PHOTO: Supermarket in Germany during the beginning of the contrived coronavirus crisis 21.3.2020.
Argentina's government announced on March 13 that it has halted registration of export sales of soy oil and soy meal, according to Reuters report.

Argentina, the world's No. 1 exporter of the two soy byproducts, is forecast to account for 48% of soy oil and 41% of soy meal exports in marketing year 2021-22, according to the US Department of Agriculture's Foreign Agricultural Service.

With the country's harvesting season set to begin in a few weeks, Argentine processors expressed their displeasure with the government's decision.

"It is totally contrary to the export interest of Argentina," the Argentine Edible Oil Association (CIARA) said on twitter. "In addition to being illegal, it will affect the income of foreign currency and employment in the agro-industrial chain."

With Argentine soybeans off the market, importers will almost certainly look to the United States and Brazil, the world's two largest soybean producers, to fill the void.


Comment: It's unlikely that the loss of nearly half of the world's supply will be able to be filled by alternate producers, as the US discovered with the potential loss of Russia's oil and the EU did when it admitted it cannot replace it's supply gas supply from Russia.


Argentine soy oil and meal exports already face a 30% tariff and there have been rumors that the government plans to raise that rate even further.