April 28, 2009

 

Argentina March corn exports down, wheat up sharply on-year

Argentina exported 881,431 tonnes of corn in March, down from 1,849,234 tonnes shipped a year earlier, according to the latest data from the animal health and sanitation service Senasa.

January's corn shipments were valued at US$138 million compared to US$400 million a year earlier.

Malaysia and Colombia have been the leading destination for Argentine corn exports so far this year.

However, Argentina isn't likely to approve more corn exports from the 2008-09 crop anytime soon, the president of the agricultural trade office, or ONCCA, Emilio Eyras, told Dow Jones Newswires this month.

ONCCA must approve all farm exports and only issues permits once domestic supply has been assured.

The Agriculture Secretariat estimates 2008-09 corn production of 12.5 million to 13.8 million tonnes. Domestic consumption is pegged at 6 million to 6.5 million tonnes and 6 million tonnes from the crop have already been cleared for export, Eyras said.

The last export permits from that quota were granted earlier this month and so far new stocks haven't been confirmed.

"Up till now with the volume declared, which is very little, we're far away from arriving at a moment to open up the export registry again," ONCCA's Eyras said.

Argentina exported 657,613 tonnes of wheat in March, up sharply from 61,167 tonnes shipped a year earlier, according to the agricultural health and sanitation service, Senasa.

So far this year, Brazil has dominated the import of Argentine wheat, buying 1.4 million tonnes.

March wheat shipments were valued at US$125 million compared to US$18 million a year earlier.

March wheat flour shipments totalled 21,121 tonnes, compared to 30,252 tonnes a year earlier.

It's unlikely that any more wheat from the 2008-09 crop over that already cleared for export will be freed up for shipment and little or no wheat is likely to be left over for export from the 2009-10 crop.

A return to drought conditions again ahead of winter wheat planting threatens to see planting drop off sharply again this season.

"Hopefully there won't be a drop in wheat production again, and we're expecting the early forecasts for wheat area soon, but it's very dependent on the drought," Eyras said.

Local analysts expect planted area and yields to drop sharply again next season due to the drought, low prices, high agrochemical costs and a further shift toward soy due to government intervention in wheat markets.

During the 2008-09 season, Argentina's wheat production plunged to 8.3 million tonnes, the lowest output in 27 years, as farmers cut back on planted area and a brutal drought battered the crop.

If the grim forecasts for 2009-10 production hold, there is likely to be little available for export over the 7 million tonnes expected to be set aside for domestic use.