October 2, 2009

Argentina has lifted the ban on corn and wheat exports as planting shrinks, fulfilling the promise made by President Cristina Fernandez de Kirchner last month.

 

The removal of restrictions will apply to exporters who commit to supplying the domestic market if required to meet demand, according to Argentina's export controls office Oncca.

 

Argentina is planting its smallest corn crop in 20 years at 1.88 million hectares, while wheat planting had plunged 40 percent after the export ban. Falling prices and drought had also further discouraged farmers from growing the grains.

 

CBOT corn futures have declined 16 percent this year and wheat contracts have dropped 26 percent.

 

Argentina may fall behind Brazil to become the world's third-largest corn exporter, the USDA said.

 

The Buenos Aires Cereals Exchange said last month that 2.75 million hectares of wheat have been planted, down from 4.6 million hectares last year.

 

Oncca has not allowed any corn exports since June 24, and the export registry has been shut for more than 90 percent of the past year.

 

The corn planting season runs from August through December, while harvesting starts in February and goes through August. Wheat is planted from April until the end of September and harvesting starts in October and runs through January.