March 13, 2023

Morocco's corn imports this year set to decline

Morocco's corn imports this year is expected to decline as its key grains source, Argentina, is affected by drought, resulting in possibly its lowest yield in three years, Morocco World News reported.

Data from the US Department of Agriculture (USDA) showed Morocco's corn imports from Argentina will reach 2.3 billion tonnes this year, down from 2.5 billion tonnes in 2022.

Argentina's total global corn exports are expected to decline by 4 billion tonnes between 2022 and 2023, from 33 billion tonnes. Argentina is currently experiencing its worst drought in more than 60 years.

The South American nation is ranked third for corn exports and first for processed soy. But the country kept lowering its estimates for the soybean and corn harvests this year.

Julio Calzada, head of economic research at the Argentina Rosario exchange, said farmers could experience a total loss of US$14 billion and a drop in soy, corn, and wheat production of up to 50 million tonnes.

Calzada said the failure of the three crops is unprecedented, and the country is waiting for rain.

The drought strikes at a time when Argentina is facing economic turmoil, with inflation reaching a startling 99% and the country's external debt rising.

Luis Zubizarreta, head of the commercial ports chamber and a representative of the soybean industry, said the situation is dramatic, adding that the drought affects the entire economy of the nation and the flow of foreign exchange at a time when Argentina needs stability the most.

-      Morocco World News