August 1, 2008


Argentine 08-09 wheat output, exports to fall on-year

   
  

Argentina's current farm conflict will lead to lower 2008-09 output and export potential, F.O. Licht's World Grain Markets Report said Thursday (July 31).
 

Argentina's 2008-09 wheat production will likely fall to 14.2 million tonnes, from 15.4 million tonnes in 2007-08, said the report.
 

The farm conflict, along with high fertilizer costs and insufficient soil moisture has made farmers uncertain about planting, F.O. Licht said.

 
"If the estimate proves to be correct, this will definitely reduce Argentina's export potential in the next season by at least 1 million tonnes," the report added.
 

Argentina's policy on grains, including the temporary closure of export registries, has prevented it from "quickly becoming an even bigger exporter on the world market and harmed its position as a reliable supplier," F.O. Licht added.

 

On the other hand, Argentina's government authorized the export of an additional 900,000 tonnes of wheat, according to a resolution published Thursday in the state bulletin.

 

The move follows the authorization of 1 million tonnes of wheat exports in June. Wheat exports were blocked in November in an effort to ensure domestic supply and rein in soaring flour prices.
   

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