MercoPress. South Atlantic News Agency
Argentina 2016/17 wheat production estimated at 14.4m tons and 8m tons exports
Argentina wheat exports in 2013-14 to Brazil dropped by more than half, to about 2 million tons Argentina’s wheat production is estimated at 14.4 million tons in 2016-17 and total exports are estimated at 8.03 million tons, the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Services (FAS) said in its latest report. The main market is expected to be Brazil, the historic, natural market for Argentine wheat and flour.
During Argentina’s previous administration, exports of wheat were limited in order to keep the domestic market well-supplied and maintain low local prices.
According to the report, in 2013-14 exports to Brazil dropped by more than half, to about 2 million tons. This forced the neighboring country to reach out to other suppliers, such as the U.S. Argentine wheat exports to Brazil in 2016-17 are forecast at 3-4 million tons. Local traders indicate that Argentina’s comeback most likely will negatively affect wheat exports from the U.S., especially those directed to supply the center-south of Brazil.
Total Argentine wheat flour exports for 2016-17 are projected at 850,000 tons (product weight), the equivalent to 1.1 million tons of wheat. This is the highest volume since 2012.
Just days after taking office last year, Argentina President Mauricio Macri implemented significant changes in the country’s agricultural sector. He eliminated the export permit system known as the Register of Export Operations (ROEs), and he rolled back what was popularly known as the “dollar clamp,” which lifted capital controls and in so doing devaluated the Argentine peso by about 45%, boosting the competitiveness of the agricultural sector.
With the new policies that the Macri Administration put in place late last year, total wheat exports rebounded significantly in 2015-16, the report said. Wheat monthly exports jumped from 53,000 tons in December 2015 to 940,000 tons in January 2016. The following months showed large volumes until August-September, when it began to slow down.
According to the FAS, exports of feed wheat to Southeast Asia countries and South Korea were unusually high, as traders exported high stocks of low protein wheat produced in the 2014-15 and 2015-16 crops.
Wheat domestic consumption for 2015-16 is estimated by the FAS at 5.9 million tons. Based on official data, flour milling in the first seven months of 2016 dropped 5%. This is a reflection of a slow economy which is adjusting to a new environment proposed by the Argentine government in order to have a more sustainable economy in the future. The report said, most economists are quite optimistic about the country’s growth as of 2017.
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Read all comments“...growing the economy....” ?
Nov 02nd, 2016 - 02:07 am 0The economy isn't growing here. It's shrinking. Gross national product (PBI, por sus siglas en cristiano) is down about 3.4 percent.
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“..... reducing inflation....” ??
Over the past 12 months it's about the same as it was during the previous 12 months. An interannual rate of about 40 percent. Down for one month? Una golondrina no hace verano.
”Rg is renown for inferior wheat (10% protein) quality.“
Nov 02nd, 2016 - 06:37 pm 0Here is one of the media reports on ”Argentina to import wheat for the first time in its history“
In jibberjabber:
http://www.lanacion.com.ar/1900339-argentina-importara-trigo-por-primera-vez-en-su-historia
And in the Uruguay press:
http://www.lanacion.com.ar/1900339-argentina-importara-trigo-por-primera-vez-en-su-historia
And a bit in English from the USDA
”...The expected average yield for 2016/17 is very similar to the previous two seasons. In 2015/16 yields were good, but the quality was very poor due to its low protein content. Some local flour mills indicate that it is one of the worst qualities of the past 20 years due to the combination of higher yields and low fertilization.....”
“Total Argentine wheat flour exports for 2016-17 are projected at 850,000 tons ... This is the highest volume since 2012.”
Nov 01st, 2016 - 05:38 pm -1“With the new policies that the Macri Administration put in place late last year, total wheat exports rebounded significantly in 2015-16, the report said.”
“...exports of feed wheat to Southeast Asia countries and South Korea were unusually high, as traders exported high stocks of low protein wheat produced in the 2014-15 and 2015-16 crops.”
“...most economists are quite optimistic about the country’s growth as of 2017.”
So, apart from boosting spending for state universities, growing the economy, helping Siemens to invest and provide us with 10,000 jobs, helping GE to invest US$10 billion, releasing the dollar clamp, starting the process of paying off our international debts which was a hole dug ever deeper for him by the previous administration's refusal to comply with their contractual obligations, stopping INDEC from lying about how bad we were doing, paying the pensioners, reducing inflation, reducing the number of power cuts, announcing a US$1.4bn investment in Patagonia, allowing Argentine farmers to export more, allowing the “Libertad” to sail to foreign ports without fear of being impounded, stopping the sell-off of Argentina to China, directly causing BP to be more interested in investing in Argentina, causing the US Ex-Im bank to start offering financing in Argentina at lower rates and introducing the Metrobus system in BsBa what did Macri ever do for us? ;-)
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