BUENOS AIRES, Aug 2 (Reuters) - Grains powerhouse Argentina is not studying a possible increase in soy export taxes for now, an Economy Ministry source with direct knowledge of the situation said on Thursday, knocking down market rumors of an imminent increase.
"It's not a subject on the agenda," said the source, who asked not to be named. "It's not a possibility for now."
The South American country is the world's No. 3 soybean exporter and its top supplier of derivatives like soyoil, used in the booming biofuels sector, and meal, used in cattle feed.
"The news is bearish for the U.S. bean market. There may have been a little support yesterday because of the rumor but it was hard to define since we're in a hot weather market," a floor source at the Chicago Board of Trade said, referring to the U.S. drought that has propelled grains prices higher in recent weeks.
Chicago August soy was down nearly 2 percent near midday while September, the next contract for 2012 delivery, was down only 0.66 percent.
The levy is a constant complaint among growers who have feuded for years with President Cristina Fernandez over her policies. She was re-elected last year on promises of increasing the government's role in Latin America's third biggest economy.
An increase in export taxes would have to be approved by Congress, where Fernandez and her allies have a majority.
Argentina has seen an explosion in soybean cultivation over the past 15 years. The government already has a 35 percent tax on exports, with a lower rate for soyoil and meal.
Argentine Agriculture Deputy Minister Lorenzo Basso said late on Wednesday that the farm ministry was not developing any tax increase plans, leaving speculation open that the Economy Ministry might be planning to propose an increase on its own. (nL2E8J1IZ8)
Trading companies with major operations in Argentina include Bunge Ltd BG.N, Cargill Inc CARG.UL, Louis Dreyfus, Molinos Rio de la Plata MOL.BA and Noble Group Ltd NOBG.SI.
