February 23, 2011

Argentina to allow additional seven-million-tonne corn export

The Argentinean government will authorise seven million tonnes more of corn exports on Wednesday (Feb 23), said Agriculture Minister Julian Dominguez.

The country is the world's No. 2 corn supplier, after the US, and farmers have just begun to bring in the 2010/11 harvest.

"We already approved five million tonnes (of corn exports) and tomorrow (Wednesday) we will authorise in two stages the seven million tonnes that remain to be exported," said Dominguez.

Argentina issues export quotas for corn and wheat and limits beef shipments to guarantee affordable local food supplies and help tame high inflation.

Farmers have threatened protests if export curbs depress corn prices in a manner similar to wheat.

Last month, growers held a week-long strike to protest against government intervention in the wheat market. Growers say the quota system stifles competition and allows exporters and millers to pay below-market prices.

The agriculture ministry has not yet officially forecast 2010/11 corn output, but the Buenos Aires Grains Exchange estimates the country's harvest at 19.5 million tonnes.

The US Department of Agriculture reduced its Argentine corn output estimate to 22.0 million tonnes earlier this month from 23.5 million tonnes in January.

The USDA sees the South American country's corn exports at 14.5 million tonnes this season.