Argentina authorises wheat exports

About 240,000 tonnes of wheat have been allowed for exports by the Argentine government, after current crop yields proved to be higher-than-expected after a severe drought.

Argentina had restricted wheat exports to guarantee domestic supplies, and the authorisation comes as part of a wider agreement with the agricultural sector, which has protested the government's farm policies for two years.

Entre Rios province, one of the main wheat-growing areas in the country, had petitioned to be able to export wheat.

The government has accused growers of holding back stocks from the 2008-09 harvest to sell for export at higher prices than they can get on the local market.

The government estimates that 2009-10 wheat production will be seven million tonnes. The USDA forecasts output of eight million tonnes in the same period.