More maize and wheat from Argentina are likely to appear on the global market in the coming months
At the end of 2015, the new government in Argentina introduced a reporting mechanism to replace the previous administration’s permit system for exports of grains and oilseeds. The change will cover wheat, barley, corn, rice, sorghum, soybeans, oats, peanuts, sunflower, and all their respective by products.
This change, combined with the recent devaluation of the peso and adjustments to export taxes, is likely to increase exports of these feed ingredients by Argentina in the coming months, according to a GAIN report from the USDA Foreign Agricultural Service. Production of corn (maize) and wheat there is likely to increase in the longer term but the incentives could reduce soybean area and production as a result.
Data from the International Grains Council (IGC) in November 2015 put Argentinian soybean production at 53.4, 61.4 and 57.0 million metric tons (mmt) in 2014-15, 2015-16 and 2016-17, respectively, with exports at 7.4, 10.5 and 11.5 mmt. Figures for the latter 2 periods are IGC estimates. Wheat production was 9.2 mmt in 2013-14, estimated at 13.9 mmt in 2014-15 and forecast to be 104 mmt in 2015-16. IGC puts exports at 2.5, 5.4 and 5.5 mmt, respectively. Argentina’s corn output was estimated by the IGC at 33.1 mmt for 2014-15 and forecast to be 33.8 and 26.0 mmt in 2015-16 and 2016-17, respectively, while export figures are 17.1, 17.5 and 16.0 mmt, respectively.
As a similar change in export procedures for meat and dairy products is pending, permits for these products may also be eliminated, the GAIN report adds.