November 29, 2010

Russia eyes three million tonnes corn import from Argentina

Russia is looking to buy three million tonnes of corn from Argentina next year to make up for this season's drought shortfall, Argentina's International Trade Secretary Luis Maria Kreckler said Friday (Nov 26).

Opening up Russia's market to the transgenic corn strains Argentina grows must be negotiated, but if approved, the first shipment is expected in January, Kreckler said. It would mark the first export of Argentine corn to Russia since the 1980s. Argentina is the world's second-largest corn exporter, behind the US.

Argentina's Agriculture Ministry is poised to authorize the export of five million tonnes of new-crop corn, the first permits to be issued for the March crop.

Argentina tightly regulates corn and wheat exports, granting export permits only after domestic stocks have been covered.

According to the Agriculture Ministry, Argentina's corn production is set to hit a record 26 million tonnes. That would be up sharply from the 22.5 million tonnes grown last year, according to the USDA.

If that production is confirmed, Argentina will likely end up exporting 18.5 million tonnes of corn from the crop, according to the ministry.

During 2009, the top buyers of Argentine corn exports were Iran, Algeria, Colombia, Egypt and Peru. The government is currently in talks to open corn exports to China. China has traditionally been a big corn exporter, but drought problems last season and soaring demand led China to import this year.

Argentina and China are working on a sanitary standards agreement before corn sales can go forward.