January 25, 2008

Argentina to reopen wheat exports

Argentina is poised to reopen the wheat export registry for a limited amount, Sean Cameron, the president of the Argentine wheat growers association, Aaprotrigo, told Dow Jones Newswires Thursday.

However, an Agriculture Secretariat spokesman said that there was no official confirmation that the export registry would be opened soon. New export commitments have been blocked since early December.

While not confirmed, there are obvious negotiations between the government, exporters and millers to open the registry, Cameron said.

The situation is reasonably urgent, and the registry will likely be opened this week or next, he added.

The government is expected to clear about 1.5 million more tonnes of wheat for export, according to Cameron.

Meanwhile, two leading farm groups issued statements this week urging wheat farmers to refuse to sell their goods until local prices rose to a parity with international prices, less shipping costs and export taxes.

The export closure has allowed Argentina millers to bid down local wheat prices, paying about ARS550 (US$174) to ARS560 (US$177) per tonne compared to a parity price of about ARS700 (US$222), Cameron said.

About 10 million tonnes of wheat are expected to be available for export from the new crop, according to the USDA.

However, less wheat is expected to be available for export this year as domestic millers process more due to government subsidies and unrestricted wheat flour exports, Cameron said.