November 12, 2004

Argentina's Sept Wheat Exports Jump 80% from Year Ago
 
Argentina's year-on-year wheat exports continued to rise in September. This comes as the country continues to sell more to non-traditional markets, according to the latest Agriculture Secretariat data.
 
Argentina exported 661,444 metric tons of wheat in September, up almost 80% from the 368,102 tons shipped during the same month last year.
 
Exports rose as Argentina sold more wheat to more buyers. Argentina thus filled a gap left by competing suppliers who could not export because of climatic problems that reduced production. Moreover, low local wheat prices made Argentine wheat more attractive.
 
However, while exports increased sales to Brazil, the traditional buyer of most Argentine wheat, exports continued to fall from a year ago.
 
Brazil bought 292,031 tons of wheat in September, declining 17.4% from 353,581 tons a year earlier.
 
Brazil is importing less because its own wheat harvest is bigger, thereby reducing demand for foreign wheat.
 
But Argentina has compensated for the slowdown in Brazilian imports by selling more to non-traditional markets such as Egypt, Kenya, Mozambique, Sri Lanka and South Africa.
 
Argentina shipped wheat to 12 countries in September, compared with only three during the same month a year ago.
 
Sri Lanka is the second biggest buyer of Argentine wheat in September, accounting for 91,535 tons compared with none in 2003.
 
South Africa came in third with 57,704 tons against none a year ago. Tanzania was fourth with 52,919 tons, compared with none a year earlier.
 
Argentina produced an estimated 14.5 million tons of 2003-04 wheat, compared with only 12.3 million tons the previous year. The higher output also explains why exports are up.
 
The US Department of Agriculture has estimated that Argentina will export 8 million tons of 2003-04 wheat. In 2004-05, exports will rise to 8.5 million, according to the USDA.
 
CORN EXPORTS
 
Meanwhile, Argentina exported 774,743 tons of corn in September. The figure is 47% more than the 527,402 tons exported during the same month a year ago.
 
Sales rose as Saudi Arabia bought 133,516 tons in September, compared with just 35,819 a year earlier.
 
Malaysia ranked second, accounting for 124,760 tons compared with none a year ago.
 
Chile was third in September, importing 111,581 tons, falling from 115,474 tons a year ago.
 
Argentina is on track to displace China as the world's No. 2 corn exporter this year, behind the US, according to the USDA estimates.
 
The USDA estimates Argentina will probably export 8.65 million tons of 2003-04 corn. In 2004-05, this figure could rise to 11 million tons.