How The Argy Situation Looks This Morning

Production Minister Debora Giorgi says the government has signed various agreements with the farm leaders eliminating export taxes on dairy goods, increasing the export quota for beef and guaranteeing a higher price for wheat sold domestically.

The idea of a grain council or board to market all grain for the government has been put on the back burner for now.

Interior Minister Florencio Randazzo described the meeting as "very positive" adding "I hope this is the end of the conflict".

What concessions have the government made exactly? They have eliminated export taxes on dairy goods, increased the current annual beef export quota of 550,000 tons by 60,000 tons and raised wheat prices to 420 pesos (116 US dollars) a tonne from 370 pesos.

In the cold light of day that doesn't look like a lot to me. Increasing the beef quota 10.5% in a year where a reported million head of cattle have perished due to drought? Many of the animals that have survived are said to be underweight and not up to export standard anyway, so they won't be going anywhere. Raising the wheat price 13.5% (to £83/tonne no less, whoopee!) in a year where production has almost halved? Cheers.

There are more talks scheduled for Mar 10 at which the farm leaders will no doubt raise the thorny issue of the soybean tax again.

So if you were an Argy farmer holding beans there is no incentive whatsoever to sell them right now.