Argentine Economy

[QUOTE=Sidney]Christina says that poverty is declining. INDEC+Christina say inflation is 8%! Other authoritative reports believe inflation is 30%! Who to believe?[/QUOTE]The government says it has an $869 million dollar budget surplus this year, as tax income rose by more than 50 percent. Also that the central bank holds about 50 billion US dollars in reserves. They spent about a billion holding the peso, so it probably 49 now.

With these large budget surpluses, why is the governments dept load going up? It make no sense. I agree with Sidney, this gov is lying about inflation, so it can pay less on inflation-protected bonds, thereby stealing money from people who brought those bonds. Its lying about the poverties figures, since the gov. Calculates the poverty figure using 8% inflation. If you assume 20% inflation, poverty is way up in Argentina. Inflation is more like 30%, anyone who been here a while can see it. so Poverty is Way up.

So if the gov has such a large surplus, why is the dept load going up where is the money going? Anyone know? Or is it a lie?

Also with the Farm strike, gov income going to go down. Does not look good as of today.

--------------------------------------------------------------------------------------

This is from Bloomberg.

Soybeans Surge After Argentina Farm Talks End Without Tax Deal.

By Jeff Wilson.

May 23 (Bloomberg) -- Soybeans rose the most in two weeks after Argentine farm leaders said negotiations with the government failed to end a two-month dispute over export taxes, raising demand prospects for dwindling U. S. Inventories.

'The meeting went badly,'' Eduardo Buzzi, president of the Agrarian Federation, told reporters after the talks in Buenos Aires. Buzzi said the outcome of yesterday's meeting makes it harder to continue talks and he called for a strong showing at a rally this weekend. U. S. Inventories before the harvest are forecast to plunge 75 percent from a year earlier.

'The failure to resolve the ongoing dispute between Argentinean farmers and the government is likely to prove supportive for soybean prices,'' investment bank Barclays Capital said today in a report to clients. 'This was the second time since March that both parties have tried to resolve the crisis, but have arrived at no amicable solution.''

Soybean futures for July delivery rose 38.25 cents, or 2.9 percent, to $13.63 a bushel at 10:33 a. M. On the Chicago Board of Trade. A close at that price would be the biggest gain for a most-active contract since May 9. The contract is still down 1.1 percent for the week.

Most-active futures before today had risen 67 percent in the past year and touched a record $15.865 on March 3.

Roads Blocked.

The failure of the talks in Argentina threatens to worsen a dispute in which farmers blocked roads and withheld supplies, causing food shortages and halting grain exports. The country is the third-largest exporter of soybeans behind the U. S. And Brazil and the biggest shipper of vegetable oil and animal feed made from the oilseed.

Farmers and opposition leaders will rally in the agricultural city of Rosario on May 25, the same day President Cristina Fernandez de Kirchner holds a rally celebrating the anniversary of the revolution that led to Argentina's independence from Spain.

Argentine production of soybean pellets, used as animal feed, slipped 50 percent to about 904,700 tons in March from 1.82 million tons a year earlier, government data show. Soybean- oil production plunged 51 percent to about 225,800 tons from 457,200 tons a year earlier.

Soybean and soybean-product exports are rising because overseas buyers are shifting to U. S. Supplies rather than hope shipments from Argentina won't be disrupted, said Jerry Gidel, a market analyst for North American Risk Management Services Inc. In Chicago.

U. S. Exports.

U. S. Soybean-export sales from Sept. 1 to May 15 have climbed 3.6 percent to a record 29.47 million metric tons from a year earlier, USDA data show. Sales of U. S. Soybean oil from Oct. 1 to May 5 have doubled, and sales of animal feed made from soybeans are up 6.5 percent.

Soybean processors have converted 1.241 billion bushels of soybeans into animal feed and cooking oil since Sept. 1, up 2.7 percent from the same period a year earlier, Census data show. Soybean inventories at processing plants fell 13 percent at the end of April from a year earlier.

'People are worried the situation will get worse before it improves,'' Gidel said. 'There's a lot of uncertainty going into the weekend.''

Soybeans are the second-biggest U. S. Crop, valued last year at $26.8 billion, government figures show. Corn is the biggest, with a value of $52.1 billion in 2007.

To contact the reporter on this story: Jeff Wilson in Chicago at [email]jwilson29@bloomberg. Net[/email].

Last Updated: May 23, 2008 11:39 EDT

[url]http://www.bloomberg.com/apps/news?pid=20601086&sid=aUdZ0KdV7HGQ&refer=latin_america[/url]

[url]http://www.bloomberg.com/apps/news?pid=20601012&sid=a_fcE2S.MK2g&refer=commodities[/url]

Argentina set to lose IMF loan.

DEBT-WRACKED Argentina is unlikely to receive a financial bail-out from the International Monetary Fund, sources said, leaving the country facing a possible return to hyperinflation and economic chaos.

A delegation from the IMF has just arrived in Argentina to decide whether to grant the country fresh aid, but fund sources said the £7 billion remaining under an existing but frozen £15bn loan package would not be released.

Instead, Argentina would only receive enough financing to pay back what it already owes the Washington-based lender this year - about £3.5bn.

"What they have to do, they can do it alone," one source at the IMF said, "This is a case where what they need is adjustment, it is not financing. This is for their own good and they should understand that."

Before the IMF team arrived, hopes had been high in Argentina that the talks would lead to the resumption of international aid after the IMF froze funds in December after the country failed to keep spending in check.

But the IMF sources said the talks were more concerned with ways to build a foundation for a credible economic platform.

The toll of the economic crisis on Argentina has been heavy. Since December, the government has fallen after riots left 27 dead and the economy has ground to a standstill.

Mongers-

This article must be from late 2001, it is way outdated, this guy who posted this must be a jackass. Argentina paid off the IMF completely about two years ago so they would not have to answer to them anymore.

Suerte,

Rock Harders

[QUOTE=Posthaste]Argentina set to lose IMF loan.

DEBT-WRACKED Argentina is unlikely to receive a financial bail-out from the International Monetary Fund, sources said, leaving the country facing a possible return to hyperinflation and economic chaos.

A delegation from the IMF has just arrived in Argentina to decide whether to grant the country fresh aid, but fund sources said the £7 billion remaining under an existing but frozen £15bn loan package would not be released.

Instead, Argentina would only receive enough financing to pay back what it already owes the Washington-based lender this year - about £3.5bn.

"What they have to do, they can do it alone," one source at the IMF said, "This is a case where what they need is adjustment, it is not financing. This is for their own good and they should understand that."

Before the IMF team arrived, hopes had been high in Argentina that the talks would lead to the resumption of international aid after the IMF froze funds in December after the country failed to keep spending in check.

But the IMF sources said the talks were more concerned with ways to build a foundation for a credible economic platform.

The toll of the economic crisis on Argentina has been heavy. Since December, the government has fallen after riots left 27 dead and the economy has ground to a standstill.[/QUOTE]Found the article, it was on google news, as a new story. But if you go to the bottom of the page, it says Last Updated: 05 April 2002 12:00 AM. Think google fuck up. If this stuff where for real, there should be hundeds of articles on it, but this is the only one.

[url]http://edinburghnews.scotsman.com/business/Argentina-set-to-lose-IMF.2315839.jp[/url]

Tue, May 27 2008, 21:03 GMT.

[url]http://www.djnewswires.com/eu[/url]

Argentina Central Bank Firms Bonds, Peso; Stocks Down On Oil

By Drew Benson

Of DOW JONES NEWSWIRES

BUENOS AIRES (Dow Jones)--The Argentine Central Bank apparently intervened in local markets Tuesday to buy bonds and sell dollars in a bid to firm up the peso and debt prices as it was unclear what the next step would be regarding stalled farm talks, traders said.

A central bank spokesman said he wouldn't have information about the day's apparent intervention until later Tuesday.

[url]http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=7ce59972-88b6-4b7c-9a73-77174702e247[/url]

May 28 (Bloomberg) -- Argentina's farmers will stop selling crops and livestock until next week in the third protest in two months over export taxes, after the government canceled talks.

Farmers will start withholding newly harvested corn and soybeans today, and livestock producers will stop sending cattle to slaughterhouses tomorrow, Mario Llambias, president of the Argentine Rural Confederation, said yesterday at a press conference in Buenos Aires. The sales disruptions are slated to end June 2, he said.

Protesters will also prevent trucks carrying grain to export terminals and disrupt domestic livestock and meat shipments, Llambias said. Blockades in March led to food shortages and increased consumer prices. The government called off talks May 26, a day after farm leaders threatened new protests during a rally by more than 300,000 supporters in the port town of Rosario, 300 kilometers (188 miles) north of Buenos Aires.

Full article

[url]http://www.bloomberg.com/apps/news?pid=20601086&sid=ah7tYabavqjg&refer=latin_america[/url]

Tessan,

Thank You for your posts.

They're very informative.

Exon

Of DOW JONES NEWSWIRES.

BUENOS AIRES (Dow Jones)--The Argentine central bank apparently intervened once again in local markets Wednesday to buy bonds and sell dollars in a bid to firm up debt prices and the peso, which reached its strongest point against the dollar since July of last year, traders said.

The monetary authority flexed its muscles as markets were relatively calm, a day after farm leaders launched their third strike since March to protest a soy export tax hike.

The central bank, by selling an estimated $70 million in the local spot foreign exchange market, helped firm the peso a full centavo on the day to ARS3.1175. The monetary authority had less influence on the local benchmark Discount bond in pesos, however, with its price ending just 0.46% higher at ARS98.75, with a yield of 10.74%.

"It looks like the central bank was again buying Discounts since the volume was very heavy for a second straight day," said local analyst Javier Salvucci of Silver Cloud Advisors. "But it barely moved, so that means there are also a lot of people selling Discounts," he added.

In the local foreign exchange market, cereal exporters also helped firm the peso as they repatriated overseas dollar earnings, one currency trader said. Steady central bank intervention has helped the peso gain seven centavos against the dollar since the currency hit a five-year low amid farm-crisis worry on April 22.

At this point, "the only explanation for continued (dollar) selling is a show of power" on the part of the central bank, the currency trader said. "There are some operators in the market who think the government is trying to show the farm sector what it can do - that it can take away the weak peso" that has favored cereal exporters since the 2002 devaluation, he said. "Of course, that goes against its model," he added.

On the Buenos Aires Stock Exchange, the benchmark Merval Index edged 0.84% higher to 2,233.41 points. Volumes were low, as most investors stuck to the sidelines awaiting a clear signal as to where the farm crisis is headed, Salvucci said.

Merval heavyweight Tenaris (TS) a maker of steel tubes used in the oil industry, rose 1.75% to ARS98.50 in thin trading, while energy fund Pampa Holding (PAMP. BA) slid 0.51% to ARS1.92.

The farm crisis has undermined confidence in the Fernandez government, sparking a sell-off of Argentine debt and leading many Argentines to cash out peso bank accounts to buy dollars.

-By Drew Benson, Dow Jones Newswires; 5411-4311-3127; [email]andrew. Benson@dowjones. Com[/email]

(END) Dow Jones Newswires.

May 28, 2008 17:09 ET (21:09 GMT)

Argentina restricts gas supplies to industry.

[url]http://in.reuters.com/article/oilRpt/idINN2937849320080529[/url]

Argentina Caps Grain-Export Tax to End Farm Dispute (Update1)

``We hope this announcement puts an end to the conflict with farmers,'' said Fernandez in a press conference in Buenos Aires. ``We want farmers to keep producing.''

``The announcement is more of the same we had,'' said Luciano Miguens, president of the Rural Society, the country's biggest farm group. ``It's surprising that they didn't ask us for an opinion.''
[url]http://www.bloomberg.com/apps/news?pid=20601086&sid=a.ObYUyt8l_I&refer=latin_america[/url]

This month the central bank has spent $1.4 billion to defend the peso, according to La Nación, a newspaper, and some money has left the banks. behind Ms Fernández stands her notoriously obstinate, and still popular, husband. In Rosario they seemed equally determined.

[url]http://www.economist.com/world/la/displaystory.cfm?story_id=11465492[/url]

The Argentine central bank continued to intervene in local markets Thursday, firming the peso and local bonds as investors largely stuck to the sidelines to await a new direction in the almost three-month-old farm crisis.

[url]http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=4c0d07cc-6886-48a8-899b-5abfdb9483eb[/url]

In a report Friday, Barclays Capital said it expects that the Argentina government's offer Thursday night to rework grain export taxes will weaken and splinter farm protests, despite initial farm leader rejection of the new measures.

That's because subsidies for small and medium farmers will make them less likely to protest as time goes on, while the planting season represents a time constraint.

"We find these arguments convincing enough to believe that, after the announcement of the government's proposal, the farmers' conflict will gradually dilute into non-disruptive demonstrations and media rhetoric," Barclays wrote.

May 30 (Bloomberg) -- Argentina's Vice President Julio Cobos said the government needs to reschedule payments on about $6 billion of defaulted Paris Club debt in order to attract foreign investment and extend the country's economic recovery.

'We have to resolve the debt with the Paris Club,'' Cobos, 53, said in an interview in Buenos Aires. 'A resolution would help the country draw more investments.''

[url]http://www.bloomberg.com/apps/news?pid=20601086&sid=aRlEnvB95fhY&refer=news[/url]

--------------------------------------

I will be surprised if people start jumping back into Argentina even if they do pay back some defaulted dept. There is a lot of dept that is in default that does not belong to the Paris Club. Plus there will still be a big lack of trust, the gov. can change it mind again.

I loaded a container yesterday that needed to be delivered by a set date. The Customs Service here, spent 2 weeks finding fault with all the documentation, which there was little to find and what there was of no consequence. Yesterday was the cut-off date to finalise the loading and during our previous discussions with Custom's Verification section, they became aware of the finite timing involved. Yesterday morning they demanded a cash payment of U$10,000 or else they would continue to delay the authorisation. Exactly the same amount as the value of the goods. No discussion. Pay or else! I paid the money and the money went into a cash box in their open office, the other 3 agents fully aware of what was going on. Papers signed as a matter of course and every thing was straight forward from then on. Normally such a payment would be at the most, ARG$1000 or at the most $2000. Now ARG$30,000. So it is almost becoming impossible to do business here. The twin bogies of inflation and corruption prevent it.

I was told nearly 20 years ago that Argentina would never change and I didn't believe it. I guess I was wrong.

In those 20 odd years, the infrastructure has deteriorated, education standards collapsed and the amount of Argentinos living in poverty doubled. Crime is just rampant and law enforcement a joke.

So what is the future?

Argento

You should bring a lawyer down there tommorrow and demand your money back or you will go to customs jeffe and then to the newspapers. If you had a witness with you at the time of the payoff, that should help.

Or go to your embassy and file a complaint.

Bring your cell phone and take pics of the thieves

[QUOTE=Argento]So what is the future?

Argento[/QUOTE]Sadly the answer is: more of the same!

Argentina's immigration history is heavily weighted in numbers and influence by Europeans. Apparently these immigrants (particularly the Italian component) have not chosen to leave one of their less flattering traits in the motherland - which is a real shame. Many immigrants to other countries have taken the opportunity to break with the past, leaving some of the impediments of their previous society behind. Don't believe it has happened this time.

I don't have any assets or liabilities here (balance sheet accounts) I only have revenue and expenses here (income statement accounts) I don't invest or borrow; I only earn and spend. Think about it.

Another way to state this is, I don't buy or borrow. I only earn and burn.

[QUOTE=Dickhead]I don't have any assets or liabilities here (balance sheet accounts) I only have revenue and expenses here (income statement accounts) I don't invest or borrow; I only earn and spend. Think about it.

Another way to state this is, I don't buy or borrow. I only earn and burn.[/QUOTE]That sounds like the financial strategy employed by a lot of chicas I know.

That is true, for my income statement. But I have a healthy balance sheet in the US. But not all the chicas are totally bad with money. Dickhead's María has a paid-for house (she earned all the money herself); Romina from Catto's owns her own, paid for apartment, and another chica I know just sold her orchard and bought an apartment with a four-year mortgage and has it rented out at positive cash flow. But, she also got a pretty good sized gift for the down payment from some wealthy Danish diplomat she met hooking.

Of course these are the exceptions and not the rule. The general rule of chica financial management can be summed up with the popular phrase: "No tengo crédito."

[QUOTE=Thomaso276]You should bring a lawyer down there tommorrow and demand your money back or you will go to customs jeffe and then to the newspapers. If you had a witness with you at the time of the payoff, that should help.

Or go to your embassy and file a complaint.

Bring your cell phone and take pics of the thieves[/QUOTE]The point that is not understood by people not involved in business here is that the money paid in coimas is distributed from the initial receivers all the way up the chain of command. Beginning of course with the direct boss and so on upwards to the political head of the department. And ultimately to the President. The only principle involved is "What is in it for me?" Each person gets their cut and there is no way out of the quandary. Any complaint would and is shrugged-off by the boss because he is a part of the distribution chain. Reform can only come down from the top and that has not changed in 200 years. Argentina became a city based on smuggling goods at its very beginning, with the customs service corrupt from that beginning.

The papers know the truth, print it, but it is water off a duck's back.

Politics here is only a way to stick your snout in the trough and get money. You never see or hear any of them wanting to enter politics to improve the morality and better the lives of the community at large. It is still class war stuff here as a diversion to the real game which is getting the money from the bribes. And all branches of government are involved. The executive, the administration, the military and law enforcement. Argentina is not so much a nation but a football team; and only if they are winning.

Argento

[QUOTE=Argento]I loaded a container yesterday that needed to be delivered by a set date. The Customs Service here, spent 2 weeks finding fault with all the documentation, which there was little to find and what there was of no consequence. Yesterday was the cut-off date to finalise the loading and during our previous discussions with Custom's Verification section, they became aware of the finite timing involved. Yesterday morning they demanded a cash payment of U$10,000 or else they would continue to delay the authorisation. Exactly the same amount as the value of the goods. No discussion. Pay or else! I paid the money and the money went into a cash box in their open office, the other 3 agents fully aware of what was going on. Papers signed as a matter of course and every thing was straight forward from then on. Normally such a payment would be at the most, ARG$1000 or at the most $2000. Now ARG$30,000. So it is almost becoming impossible to do business here. The twin bogies of inflation and corruption prevent it.

Argento[/QUOTE]It sucks that you have to pay a bribe, to get passed the customs people. Now that you paid them 30000P to get your stuff shipped, they're going to remember it, and hit you up again with a similar amount of money.

Usually in these situations you have to stay polite, even though they are robbing you. And tell them nicely, that you can't pay that much, because you making less money then that, on the sale of the items. They will usually find a lower number, if you let them know you ship X time a year, and they will get more money in the future. But it hard to talk very friendly with someone who is robbing you.

30k seems high for 1 container. If it is rare for them to get that much, they will remember you next time as the big money man, and hit you up again.

The only thing I can think of, is next time give yourself the maximum about of time you can, to get through customs. Don't let them know of any time constraints, and fight them, until the come down on the bribe to the more normal level. Let them know you can't pay that much and stay in business. And always stay polite. It's hard doing business in a corrupt society.

[QUOTE=Dickhead]I don't have any assets or liabilities here (balance sheet accounts) I only have revenue and expenses here (income statement accounts) I don't invest or borrow; I only earn and spend. Think about it.

Another way to state this is, I don't buy or borrow. I only earn and burn.[/QUOTE]Sound economic policy in a place like this if you ask me.

Lets Sidney and I buy some apartments and get "Rich" on the appreciation.

Exon

Looks like the K's are trying to strengthen the peso. They tried to keep it around 3.15p for a long time, now they are bring it up by selling dollars. DOW JONES NEWSWIRES says it's because of the farm strike. Could be, but it might also be a way to bring down inflation, by making the peso stronger. La Nación said on 5-29 that the central bank had spent about 1.4 billion dollars making the peso stronger. Since they had been intervening every market day since then, they are probably around 1.6-1.7 billion now. That should leave the central bank about 48.3 billion in ammunition to strengthen the peso. Don't know how fares the central bank wants to take the peso, but if they start spending too many dollars, someone will eventually take the other side of the trade. Most trader are just watching, and don't want to fight the bank yet. Also if the gov. settles with the farmers, anyone shorting the peso, can get burned big time.

--------------------------------------------------------

Of DOW JONES NEWSWIRES.

BUENOS AIRES (Dow Jones)--The Argentine peso continued to gain ground on the U. S. Dollar Monday as the central bank apparently continued to sell dollars in a bid to firm the local currency amid an entrenched farm conflict.

The peso closed at ARS3.0875 against the dollar in interbank trading, from ARS3.10 at Friday's close. It has been a sharp turnaround from the five-year weak-point of ARS3.1825 the peso hit amid farm-crisis worry on April 22. To push the peso, the central bank has sold more than $1.4 billion in reserves over the past few weeks.

For nearly five years, the government has regularly bought dollars to maintain a weak peso that favors exporters. Currency traders think the central bank's decision to deliberately strengthen the peso of late is a way to show cereal exporters just who's in charge.

[url]http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=f6145a7f-bad4-4bed-b305-cb7de6e37009[/url]

Argentine Farmers Extend Halt of Grain Exports Until June 9

By Eliana Raszewski.

June 2 (Bloomberg) -- Argentine farmers prolonged protests over higher taxes on grain and oilseed exports until June 9, Luciano Miguens, president of the country's Rural Society, said.

Farmers will continue halting grain and oilseed exports until next week, while they will resume trade of livestock tomorrow, Miguens said in a televised press conference from the port town of Rosario.

To contact the reporter on this story: Eliana Raszewski in Buenos Aires [email]eraszewski@bloomberg. Net[/email]

Last Updated: June 2, 2008 22:13 EDT

I thought I caught a Bloomberg piece on this forum last Thurs night that indicated the strike was over. Of course, now I cannot find it. Anymore info on this would be greatly appreciated. Thx.

[QUOTE=Rioman]I thought I caught a bloomberg piece on this forum last Thurs night that indicated the strike was over. Of course, now I cannot find it. Anymore info on this would be greatly appreciated. Thx.[/QUOTE]No one said it was over. There was a post my me, from bloomberg that was titled "Soybeans Plunge on Speculation Argentine Farm Strike Will End." Speculation is not fact. It was back 5-19, in a different thread. After that soybeans shot up, after it became clear the gov. was not going to compromise yet.

[url]http://www.argentinaprivate.com/forum/showthread.php?t=4606[/url]

Appreciate reponse, but this is not article that I thought I saw as it was Bloomberg and am almost sure it was dated last thurs night 8pm. Do not think I was seeing things, but maybe was.

Here is article that was referring to - obviously it does not mean that anything changed: By Eliana Raszewski.

May 29 (Bloomberg) -- Argentina's government, bowing to pressure from farmers, said it will impose a cap on variable export taxes for grains and oilseeds to end two months of protests that had disrupted trade and caused food shortages.

The maximum levy, which previously rose as high as 95 percent depending on prices, was reduced for corn, soybeans, wheat and sunflower seed when prices rise to specified ranges, Cabinet Chief Alberto Fernandez said today during a press conference in Buenos Aires. Tax rates will remain in place at prices below those levels, he said.

'We hope this announcement puts an end to the conflict with farmers,'' said Fernandez in a press conference in Buenos Aires. 'We want farmers to keep producing.''

The government sought to end a conflict that led farmers to resume demonstrations yesterday until June 2, the third protest since the new tax system was announced in March. Ricardo Buryaile, vice president of the Argentine Rural Confederation, said announcement won't end the dispute.

'The protests will continue as it was scheduled,'' said Buryaile in an interview with Todo Noticias television channel.

Grain trucks stopped arriving at Argentina's main ports after farmers resumed the blockades yesterday. The Rosario Board of Trade said on its Web site that no trucks arrived at regional ports overnight, compared with an average of 5,532 trucks a year ago. Truck arrivals are down 8 percent so far this year because of the two-month dispute with farmers, the board said.

Tax-Rate Cut.

The government reduced the maximum export tax on soybeans to 51.7 percent from 55.9 percent when prices reach $700 a metric ton, and will be 52.7 percent rather than 58.5 percent when prices reach $750, according to a spreadsheet of the changes provided by the economy ministry. The rate remains unchanged for prices up to $600, when the tax will be 49.3 percent.

Soybean futures closed today on the Chicago Board of Trade at $13.23 a bushel, or $486 a ton, the ministry said. Soybeans reached a record $15.865 a bushel, or $582.93 a ton, on March 3.

The sunflower-seed tax was cut to 51 percent from 54.6 percent when prices are at $800 a ton, and will be 52.7 percent rather than 59.1 percent when prices are at $900, the economy ministry said.

Corn, Wheat.

The tax on corn was cut to 45 percent from 53.8 percent when prices reach $400 a ton, the ministry said. They will be unchanged at 40 percent when the price is $300 a ton. Corn futures closed today at $5.8275 a bushel, or $229.42 a ton, down from a record $6.39 a bushel, or $251.56 a ton, on May 9.

The rate for wheat was reduced to 37.9 percent from 39.8 percent when prices reach $500 a ton, and will be unchanged at 35.4 percent for prices at $450, the ministry said. The rate for $600 wheat will be 41.6 percent, down from 46.3 percent. Wheat futures in Chicago closed at $7.415 a bushel, or $273.19 a ton, down from a record $13.495 a bushel, or $495.85 a ton, on Feb. 27.

'The announcement is more of the same we had,'' said Luciano Miguens, president of the Rural Society, the country's biggest farm group. 'It's surprising that they didn't ask us for an opinion.''

To contact the reporter on this story: Eliana Raszewski in Buenos Aires [email]eraszewski@bloomberg. Net[/email]

Last Updated: May 29, 2008 20:14 EDT

The sliding scale tax on farmers, is destroying the Argentine Future market. Farmers are no longer selling contracts to borrow money, since their risk is up, but there reward is way down, since the tax is a sliding scale.

[url]http://www.bloomberg.com/apps/news?pid=20601086&sid=a6MzIy5dpIkU&refer=latin_america[/url]

This seems strange to me. The Truckers are blocking the roads, because they are mad about the Farm Strike. Somehow by blocking the roads they will get the farmers to end there strike? Who do you blame for the food shortages? The farmers or the truckers? The farmers are no longer blocking food coming into the cities, since they want the support of the population. So the Trucker will, so they don't get that support? This is funny Argentine Logic, I think.

-----------------------------------------------------------------

•Reuters.

•, Thursday June 5 2008

By Nicolas Misculin.

BUENOS AIRES, June 5 (Reuters) - Roadblocks manned by hundreds of truckers on Thursday in Argentina's heartland threatened to revive food shortages as a deadlock between protesting farmers and the government dragged on.

Farmers are staging their third strike in nearly three months over higher export taxes on the country's top crop, soybeans. They are withholding grains from market through Sunday, and some truckers frustrated with the halt to commerce have blocked highways to press for a solution.

Fewer products are arriving at the Buenos Aires Central Market, where most of the city's fruits and vegetables are sold.

"There's been a small drop, about 70 percent of goods are arriving," a source at the wholesale market said on condition of anonymity.

Farmers blocked highways during their first, wide-scale strike in March, sparking shortages of such staples as beef and dairy products on supermarket shelves. They have since changed tactics to avoid alienating city dwellers.

"The situation has grown complicated for the truckers. The government should pay more attention. This is the result of not having resolved the farm problem," Eduardo Buzzi, president of the Argentine Agrarian Federation, told reporters.

Television images showed hundreds of trucks parked on rural highways, and dairy sector leaders warned that this new twist to the farm conflict could spoil millions of liters of milk.

"This strike on the highways blocks all economic activity and once again threatens to cause shortages and higher prices. This has become a strike against the Argentine people," Interior Minister Florencio Randazzo told local radio.

The minister later said in a televised press conference that the government would not cede ground on the rate of grains export taxes, but was willing to discuss future farm policy once the strike ended.

Farmers first took to the streets after the government announced a new sliding-scale export tax system for grains and oilseeds, which raised levies on soy and sunseed products.

The government defends the tax hike, saying it helps curb inflation while protecting consumers. But farmers call the rates confiscatory and are venting after several years of heavy state intervention in the grains and livestock markets.

The bitter conflict has caused a former economy minister to resign and dragged President Cristina Fernandez's approval ratings down, just six months after she took office.

It has also pressured the local currency, forcing the central bank to sell its foreign reserves to sustain the peso. (Additional reporting by Lucas Bergman; Writing by Hilary Burke; editing by Jim Marshall)

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Don't think the trucker are on the side of the farmers, since when the farmers where blocking roads earlier, they had conflicts with the truckers. At one point the truckers threaded to break throw the farmer lines, and end the blockade, when the farmers announced they where armed, and would defend themselves. There is some legal stuff going on against one of the farm leader because he said that then, think it was DeAnglio, or something like that. Forget his name now. Being accused of inciting valance. The truckers then said, that if they could not pass, they would block all roads, so no one passes.

By blocking the roads, then or now, do the truckers help the Farmers by putting more pressure on the government to settle? Or help the government by getting the public mad? If the public gets mad, who do the blame? Gov? Truckers? Farmers? I am confused.

I blame greedy consumers for the strike. What right do they have to expect food on the grocery store shelves? If this is a problem, they should take some initiative and grow some food themselves. Granted it could be problematic to have cattle in a one-bedroom apartment in Capital Federal, but why not a few chickens? Even a large pig would fit in a one-bedroom apartment. It is time to stop blaming other people and become more self-reliant. We have avocados and lemons on the trees here so we can at least make guacamole. As far as chips for the guacamole, I am thinking maybe paint chips. Think about all the chipped paint you see everywhere in Buenos Aires. Also we have some quiñotos (kumquats) so we can have freshed-squeezed juice. Of course it takes about 50 kumquats to make a glass of juice but at least we have home-grown alternatives.

There is plenty of room in Palermo and the surrounding parks for cattle. Someone could even sow a few acres of wheat. Breed fish in the Palermo lake. You have all probably seen weeds and even trees growing on roofs. It would just be a question of planting lettuce there.

I prefer a beer and pussy diet of which there is plenty of both in Recoleta