February 27, 2009

Argentina's exports of wheat and corn in January were down sharply on the year as the government limited exports due to expectations of greatly reduced production due to drought.

 

Argentina exported 1,311,118 tonnes of wheat in January, down from 3,421,274 tonnes shipped a year earlier, according to the agricultural health and sanitation service, Senasa.

 

January's wheat shipments were valued at US$250 million compared to US$999 million a year earlier.

 

In late January, ONCCA rejected wheat export permits while it waited to calculate stocks -- the amount includes what is held by millers and crushers, as well as the grains stored in silos -- so as not to put at risk domestic supplies.

 

However, on February 12, ONCCA said that it would approve the export of 520,000 more tonnes of wheat from the 2008-09 crop.

 

With production pegged at just 8.3 million tonnes this season, according to the Agriculture Secretariat, and domestic demand estimated at seven million tonnes, very little, if any additional exports are likely to be approved.

 

The country also exported 189,348 tonnes of corn in January, down from 219,351 tonnes shipped a year earlier, according to Senasa.

 

January's corn shipments were valued at US$29 million compared to US$36 million a year earlier.

 

On February 12, ONCCA also said that it would approve an additional six million tonnes of corn exports.

 

The Agriculture Secretariat estimates 2008-09 corn production of 12.5-13.8 million tonnes, down from 20.5 million tonnes a year ago.

 

With domestic demand estimated at over 6.1 million tonnes, exports this year are likely to fall sharply from the 14.7 million tonnes shipped in 2008.