The geopolitical crisis in Ukraine is having an impact on countries in the region. The Colombian government is no exception and is trying to avoid double-digit inflation. Countries such as Argentina have taken measures through their economic cabinet to deal with this situation. It was learned that Argentina will suspend soybean oil and soybean meal exports, which could have an impact on withholding taxes on these products.
These measures are intended to increase taxation on soybean and meal exports from 31% to 33%, a figure which, according to analysts’ estimates, could raise an additional US$ 400 million.
Although governments have made efforts so that Colombia does not depend on imports of these products, a large volume is still required from abroad. Last year, according to figures from the Federación Nacional de Cultivadores de Cereales, Legumbres y Soja (Fenalce), approximately two million tons were imported.
Argentina is the second largest exporter of soybeans and their derivatives to Colombia, with a total of 385,222 tons or 16.7% of the total figure, being surpassed only by the United States, which exports more than 1.5 million tons or 69%. After these two countries comes Bolivia, with 318,372 tons (13.81%), Brazil with 8,034 tons (0.35%), and others, such as Chile, Ecuador, Peru and China.
“Soybean prices ended the round with slight drops in Chicago, pressured by the drop in oil prices, with the May position losing 45.86 dollars, amidst a drop in the value of oil of more than 8%. For a good part of the round it remained positive due to the rise in the value of meal, which increased at the close of the export register in Argentina, in anticipation of a possible increase in export duties”, said the National Federation of Cereal, Leguminous and Soybean Growers.
Source image: “Argentina flag” by Qu1m is marked with CC BY 2.0.