(Adds quote from grains analyst, graphic)
By Maximilian Heath
BUENOS AIRES, April 11 (Reuters) - Argentina has
authorized exporters to delay soy shipments for up to 60 days,
the government said in a resolution on Tuesday, as the country
battles a historic drought that has hobbled grains production
and trimmed inflows of critical foreign currency.
The announcement follows a decision by the government in March
to delay shipments of corn by up to 180 days and after it rolled
out similar measures for wheat late last year. It gives
exporters more time to physically ship previously agreed sales.
Argentina is caught in a delicate balancing act. It needs to
spur grains exports to bring in much-needed foreign currency and
refill depleted central bank reserves, while ensuring domestic
supply to rein in prices, with inflation running at over 100%.
The measure, announced in the official gazette, comes a day
after the South American government launched a preferential
exchange rate scheme to spur soybean exports from the country,
the world's top exporter of processed soy oil and meal.
The "soy dollar" scheme, which offers an exchange rate some
40% higher than the controlled official FX rate for sales of
soybeans, recorded few takers on Monday, with would-be
participants citing insufficient technical details.
The Tuesday resolution, however, also laid out some
specifics of the scheme, which may spur increased trades.
"It is likely that we will see a bit more movement in the
afternoon," said Eugenio Irazuegui, an analyst at local grains
brokerage Zeni.
"Various points were clarified in the resolution that was
published today," added a source at another brokerage in
Rosario, Argentina's main port for grains exports. The source
spoke on condition of anonymity.
Argentina is hoping the preferential exchange rate for soy
exports can spur a wave of sales and help bring in much-needed
foreign currency to build up depleted central bank reserves.
The drought, between early last year and March, led to the
wheat harvest being cut in half versus a year earlier and
repeated cuts to corn and soy forecasts, with the soy harvest
expected to be the worst in almost a quarter of a century.
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(Reporting by Maximilian Heath; Writing by Brendan O'Boyle;
Editing by Jonathan Oatis)
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