The incredible rally of the Argentine corn exports
The weekly RIA Consultores’ report shows this week that during the first half of the year, Argentina exported 17.1 million metric tons of corn, 44% up 2018 in volume and 32% up in value. This amazing growth is based on a 57 MMT record harvest and on bullish prices.
According to the Agro-Industry Secretariat, during the 2018/19 campaign corn production peaked at 57 MMT, which 34 MMT will be exported and 9 MMT will remain as carryover for the next season.
This week the International Grains Council stressed that “aided by a heavy surplus and competitive pricing, corn export program by Argentina has been progressing at a record pace, with MY2019/20 (Mar/Feb) shipments seen at unprecedented levels, up by more than one-half y/y”. The IGC forecasts that 35 MMT will be exported in the current commercial year (Mar/Feb) versus 25 MMT last season.
Officials from the Agro-Industry Secretariat show them optimistic about a new extension of the corn planted area during 2019/2020 that will start since September. The Rosario Grain Exchange (BCR) estimates that corn area could increase another 10% this new season.
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