February 21, 2023
Rosario Grains exchange warns of 40% drop in Argentina's corn exports
The Rosario Grains exchange (BCR) said Argentina's corn exports will drop about 40% year-on-year between March and June, due to fewer hectares planted early this season because of a major drought, Market Screener reported.
The BCR forecast only 8.7 million tonnes of corn exports in those four months. Only 19% of an estimated 7.3 million hectares (18.04 million acres) were sown in the early weeks of the campaign, as many farmers awaited rains that did not happen in many regions.
The BCR cut its corn production estimate to 42.5 million tonnes for the second time last week, citing the worst drought in 60 years. It had predicted a 55 million-tonne harvest at the start of the cycle in September.
The exchange said there will be less corn overall this year, but also a change in the seasonal pattern of grain availability, with only a very small portion available for consumption and shipment in March to April.
Early corn yields are more than late corn yields. These are typically exported during this period, while late corn is shipped between July and September.
Total corn exports for the current season are expected to be 27.5 million tonnes, according to the BCR.
Argentina's government limits corn exports to ensure domestic supply. The amount of grain that can be shipped abroad is adjusted to the current campaign. The allowance is 20 million tonnes for the 2022/23 season.
- Market Screener