Argentina studies curbing wheat and corn exports

Parallel to the increase in the “retenciones” of soy oil and bran, the newspaper La Nación informed that the Alberto Fernandéz administration is also coming up with measures to limit wheat, corn, and sunflower exports.

According to the Argentine newspaper, several sources pointed out that the government wants to preserve domestic supplies in the face of the war between Russia and Ukraine.

The same report also stated that a plan to temporarily limit exports and, later, increase wheat retention to 25%, corn retention to 20%, and sunflower retention to 15% is being considered.

The idea of curbing sales of corn, wheat, and sunflower and increasing retentions on their derivatives came from Minister Roberto Feletti’s portfolio (Internal Trade) and is under evaluation by the Ministry of Agriculture, led by Julián Domínguez.

The Agriculture Ministry declined to comment, La Nacion reported. Argentina is one of the largest corn and wheat exporting countries in the world. As for wheat, Brazil is Argentina’s main customer.

Gabriel de Raedemaeker, vice president of the Argentine Rural Confederations, going further in this direction would be a “declaration of war.” According to him, the government is more likely to raise export tariffs indirectly.

According to a US Department of Agriculture (USDA) estimate released last week, Argentine wheat exports will reach 14 million tonnes this crop cycle, up from 11.5 million the previous cycle. In the case of corn, the USDA estimated shipments at 39 million tonnes, which is around 1.6 million tonnes fewer than in 2020/21.

Source: Valor Econômico

To read the full original article please go to:

https://valor.globo.com/agronegocios/noticia/2022/03/16/argentina-estuda-medidas-para-coibir-exportacao-de-trigo-e-milho.ghtml

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