UPDATE 2-Argentina trade surplus narrows 3 pct in Feb

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BUENOS AIRES, March 21 (Reuters) - Argentina's February trade surplus narrowed 3.0 percent from the same month last year, the Economy Ministry said on Wednesday, coming in below market expectations as agriculture-related imports climbed.

The South American country rang up a surplus of $720 million compared with $742 million in the same month in 2006.

A Reuters survey of 13 analysts yielded a median forecast of $815 million, with estimates ranging from $510 million to $970 million.

Led by increased shipments abroad of vegetable, soy and sunflower oils, exports rose 14 percent in February from the year-earlier period. Imports climbed 20 percent, pushed higher by an increase in soybean, herbicide and fungicide imports.

Last year, Argentina registered a trade surplus of $12.41 billion versus $11.66 billion in 2005.

The trade surplus has declined since hitting $16.72 billion in 2002, when the peso currency was devalued during an economic crisis and imports plunged.

Since then, the economy has grown by more than 8 percent in each of the last four years. Argentina's economy, Latin America's third-biggest, is expected to expand by 7.7 percent in 2007, according to a central bank estimate.

A central bank survey from last month put February's trade surplus at a median of $776 million and the 2007 surplus at $11.69 billion, down from last year's $12.41 billion surplus BCRA30.