Argentine farmers seen hoarding soy as prices lag

[Judi Lynn]

Argentine farmers seen hoarding soy as prices lag
By Nicolas Misculin

BUENOS AIRES | Fri Mar 12, 2010 6:41am IST

BUENOS AIRES (Reuters) - Argentine soy farmers will sell this year's harvest slowly in the hope of higher prices as expectations of bumper production in South America weigh on global grains markets.

As growers start to gather the first 2009/10 soybeans in the world's No. 3 exporter, the harvest is forecast at a record of about 53 million tonnes which would raise some $17 billion in much-needed hard currency.

Argentina's government needs to maintain a healthy trade surplus as it seeks to tap foreign reserves to pay rising debt obligations this year. Hefty export taxes on grains also mean higher revenues for the cash-strapped government.

However, the nation's farmers will likely sell their beans slowly, opting to stash them in giant, plastic silo bags on the farm while they wait for better prices.

More:
http://in.reuters.com/article/2010/03/12/idINIndia-46851920100312