July 26, 2006
Argentina's May wheat sales up 10.7 percent on-year
Argentina's year-on-year wheat exports rose 10.7 percent in May, reversing 10 consecutive months of declines, according to the latest Agriculture Secretariat data.
Argentina exported 758,732 tonnes of wheat in May, compared with 685,607 tonnes shipped during the same month a year ago, the Secretariat reported.
Sales rose as Argentina shipped more wheat to Brazil, its leading wheat importer.
Global demand for wheat is up at a time when some producers are having a hard time boosting production.
Brazil imported 502,352 tonnes compared with 494,067 tonnes a year ago.
Colombia ranked second in May, buying 111,496 tonnes against just 10,000 tonnes a year ago.
Chile was third, importing 26,253 tonnes, compared with 6,065 tonnes a year earlier.
The US Department of Agriculture has forecast Argentina's 2005/06 wheat exports at 7 million tonnes and 2006/07 exports at 9.5 million tonnes.
Farmers are almost finished planting the 2006/07 wheat crop.
The USDA expects Argentina's 2006/07 wheat output to total 14.3 million tonnes.
Corn exports
In contrast to wheat, May corn exports fell.
Argentina exported 1,130,736 tonnes of corn in May, down 22.7 percent from 1,462,436 tonnes during the same period a year earlier.
Exports dropped partly because production declined to 14 million tonnes from 19.5 million the previous season, according to the USDA.
Malaysia was the leading importer, buying 247,938 tonnes compared with 227,249 tonnes a year earlier.
South Africa ranked second, importing 89,275 tonnes, up from only 25 tonnes a year ago.
Colombia was third as it imported 64,787 tonnes, up from 18,844 tonnes in May 2005.
High taxes and production costs, as well as bad weather, led farmers to plant less corn in 2005/06.
Analysts say that because of this--and solid domestic demand for corn--2005/06 exports fell to 10 million tonnes from 14 million a year earlier. The USDA sees Argentina's 2006/07 corn exports at 11.5 million tonnes.
