Argentina limits corn and wheat exports to curb food prices

A resolution issued by the Argentine government on Friday (December 17) indicated that the government will restrict the export of corn and wheat in the 2021/22 season to avoid domestic supply shortages and curb food inflationary pressures.
The Argentine government stated that the export volume of Argentine corn in 2021/22 will be limited to 41.6 million tons, and the export volume of wheat will be limited to 12.5 million tons. Argentina is the world’s second largest corn exporter and the world’s main wheat supplier.
In comparison, Argentina’s corn exports in 2020/21 reached 39.8 million tons and wheat exports reached 11.2 million tons. In this way, export restrictions this year are relatively mild, but cereal production this year is expected to increase year-on-year.
The Buenos Aires Grain Exchange predicts that the corn production in Argentina in 2021/22 will be 57 million tons, which is higher than the 52.5 million tons in the previous year; the wheat production is expected to reach 21 million tons, which is higher than the 17 million tons in the previous year.
According to data from the Argentine government, as of December 15, Argentina has registered to export 15.5 million tons of corn and 9.1 million tons of wheat, both of which are crops for the 2021/22 season.

This year the Argentine government has repeatedly intervened in the food market because the inflation rate has exceeded 50%. At the beginning of the year, the government restricted beef exports, which caused tensions between the government and the agricultural industry. Argentina eased beef exports last week, but the new grain export restrictions may once again cause dissatisfaction in the grain industry. The president of the Argentine Rural Society, Nicolas Pino, said that this will create an artificial oversupply. Gustavo Idigras, president of the Argentine Grain Export Association, said that the move was not ideal, but the method was rather gentle. We hope that there are no restrictions, but this is the decision of the government.

Source: Master Boyi

Post time: Dec-23-2021