April 10, 2006

 

Argentina's January wheat sales fall 60.5 percent year-on-year

 

 

Argentina's year-on-year wheat exports fell for the eighth consecutive month in January, the latest Agriculture Secretariat data show.

 

Argentina exported 910,511 tonnes of wheat in January, down 60.5 percent from the 2,302,459 tonnes shipped during the same month a year ago, according to the Secretariat.

 

Sales declined as Argentina shipped less or no wheat at all to its usual buyers. Moreover, Argentina has less wheat to sell. This season's crop is on track to total just 12 million tonnes, down from about 16 million tonnes the previous year.

 

Argentina shipped wheat to 15 countries in January, compared with 30 a year earlier.

 

Brazil, which is easily the top importer of local wheat, bought more in January, importing 656,469 tonnes compared with 363,705 tonnes a year earlier. Brazil had trouble with its own wheat harvest, increasing its need to import from Argentina.

 

Peru ranked second with 92,271 tonnes, compared with 57,602 tonnes a year ago.

 

Chile was the third-ranked importer in January, buying 64,528 tonnes of wheat against just 5,174 tonnes a year earlier.

 

Colombia was fourth, importing 26,344 tonnes of wheat, compared with 25,910 a year earlier.

 

The US Department of Agriculture has forecast Argentina's 2004-05 wheat exports at 10.8 million tonnes.

 

Farmers planted much less wheat in 2005/06 and analysts say production this season dropped to about 12 million tonnes. This will push Argentina's 2005/06 wheat exports down to 7 million tonnes, according to the USDA.

 

 

CORN EXPORTS

 

In contrast to wheat, corn exports rose in January.

 

Argentina exported 838,373 tonnes of corn in January, up 19.6 percent from 701,073 tonnes during the same period a year earlier.

 

Exports rose because of increased production and demand, as well as competitive pricing.

 

Some 36 countries imported Argentine corn in January, down from 39 the same month in 2005.

 

Argentina's 2004/05 corn harvest totalled 20 million tonnes compared with just 13.5 million tonnes a year earlier, according to the Secretariat.

 

Peru was the leading importer in January, buying 132,163 tonnes compared with 96,672 tonnes a year earlier.

 

South Africa ranked second, importing 107,844 tonnes, up from nothing a year ago.

 

Chile was third, as it imported 107,131 tonnes, up from just 87,443 tonnes in January 2004.

 

High production costs and bad weather led farmers to plant much less corn for the 2005/06 season.

 

As a result, this season's harvest is expected to decline to 14 million tonnes. Many analysts say that because of this--and solid domestic demand for corn--exports will drop to approximately 7 million tonnes in 2006.