01-10-2014 07:30 AM
Yes, It is 35 percent tax on exports. That's an unusual tax and big money that the Argentine government, a broken one, is rushing to get. Also, people do not always remember that a lot of subsidies for those who live in the city in Argentina are paid with this money generated by grain exporters there. It becomes an issue of life and death for the Argentine government when farmers strike...
01-10-2014 07:30 AM
01-10-2014 07:37 AM
great point bkadds,
Not specificly, but I will try to get it. I was refering to a discussion with a dealer on the issue on the cost of meeting the 2014 epa regulations per tractor. His comment was based on company discussions of the cost per tractor of regulation that is not necessary on export sales.
01-10-2014 07:52 AM
For the most part - I'm 99.9 precent wrong on this marketing stuff - so this will probably be no defferent - but think it will ( the report ) will be a non event - How long have all the PRO's been say'n The corn will be better - on higher yields - Yet the price on corn has traded sideways for better than a month with everybody and there brother on the say boat - well all but MT1 lol
Wouldn't be surprised to see corn up after they Drop the Bomb
At least you started your post off with some accurate information. Trust me Kenny, this won't be a non-event. Also, what is a say boat? Can't say I've ever seen or been on one.
You think we're trading sidweays now, just wait until we get into the $ 1.25 - 1.75 range. Only way we'll ever see profitable levels in the forseeable future is with some reduction in buhels produced. Better be praying for a spring flood event lasting till late June followed by a flash drought....although that chain of events would still probably result in a record crop.
01-10-2014 08:24 AM
01-10-2014 09:47 AM
Here is a clarification on the soybean tax talk in Argentina. This comes from a financial advisor in Paraguay. He is following the discussion and just asked me to add this to the mix:
"In your chat on the Price of argentian soy, there is a small specific point....and BIG difference that Luis didn't say.
Yes, there is a 35 retention, but also they HAVE to sell at official dollar....which is around 6.62. Meanwhile, the "blue" dollar or parralel market is at 10.80. They loose another 30% in pesos......," he says.
I hope this helps,