July 27, 2011

Argentina raises wheat grain export limit to 450,000 tonnes

Argentina will raise its limit on wheat grain exports to 450,000 tonnes, as part of an effort to expand the country's wheat export markets, particularly to China.

Economy and Agriculture ministers Amado Boudou and Julián Domínguez announced that out of the 450,000 tonnes, 150,000 will come from the Entre Ríos province, and the 300,000 left will come from the Santa Fe and Buenos Aires provinces.

The measure comes after Dominguez's "successful trip to China" in which he looked to expand the markets while making sure that the local population's consumption levels remain unchanged, according to Boudou.

"By taking into account the Agriculture Ministry's report, which describes in detail the amount of wheat grains exports levels, we've been able to move forward towards this decision, which will benefit producers in the Buenos Aires, Santa Fe and Entre Ríos provinces," Boudou said.

Domínguez predicted that wheat grain production would reach 16 million tonnes, with 8.8 million being exported.

Both Domínguez and Boudou insisted that these 450,000 tonnes are part of an export balance, and this increase "should have no impact on local prices."