December 27, 2007

Argentina extends wheat export registry closure indefinitely

Argentina extended the closure of its wheat export registry indefinitely while the government continues to study whether damage from frost in November will limit output and threaten domestic supply, an Agriculture Secretariat spokeswoman said on Wednesday (December 26, 2007).

The registry was shut earlier this month amid a flood of new crop export declarations and concerns that production may be lower than expected.

However, in the government's Dec. 21 monthly crop report, the forecast for 2007-08 wheat production was unchanged at 15.4 million tonnes.

Favorable moisture conditions boosted yields and allowed the crop to recover from late frosts in November, according to the Secretariat. The production estimate is "almost certain," it said, indicating that with 40 percent of the crop harvested and the balance reaching maturity, weather conditions would cease to affect production potential.

The spokeswoman did not explain the discrepancy between the monthly report and the ongoing concerns being used to justify the extension of the registry closure.

However, "the registry is expected to be opened in the short-term," the spokeswoman said.

Before the registry closure, exporters had declared more than 7 million tonnes of 2007-08 wheat for export, according to the Agriculture Secretariat.

About 10.5 million tonnes of wheat are expected to be available for export from the new crop, according to the US Department of Agriculture.