Maximilian Heath – Reuters Jan 31, 2020
Argentina will suspend sales of corn for export until Feb. 28, the agriculture ministry said on Wednesday, announcing the surprise move as part of the government’s effort to ensure ample domestic food supplies.
The move by the world’s No. 3 corn supplier was a sign of tightening global food supplies during the COVID-19 pandemic.
“This decision is based on the need to ensure the supply of grain for the sectors that use it as a raw material for the production of animal protein such as pork, chicken, eggs, milk and cattle, where corn represents a significant component of production costs,” the statement said.
Argentina’s government is struggling to control food price inflation and help low-income families contending with an economy shrinking during the pandemic. Buyers can still book corn from Argentina, but only for a shipping date March 1 or later.
Russia this month announced a grain export quota and wheat tax as President Vladimir Putin criticized rising food prices.
And major agricultural exporter Brazil has imported staples including soybeans. Chicago Board of Trade corn futures notched a 6-1/2-year high on Wednesday after Argentina’s announcement.
The South American grains powerhouse is also a big international soybean and wheat supplier as well as the world’s top exporter of soymeal livestock feed.
“To date, 34.23 million tonnes of corn from the 2019/20 season has been authorized for export, out of a exportable total of 38.50 million tonnes,” the statement said.
“The objective of the measure is that the remaining 4.27 million tonnes remain available for domestic consumption, in order to ensure the supply during the summer months when the supply of cereal tends to be scarce,” it added.
Farmers and other players in Argentina’s corn chain traditionally oppose this type of intervention in the markets.
“We are absolutely surprised. It does not make sense. There was never a lack of corn in Argentina,” said Alberto Morelli, head of Argentina’s MAIZAR corn industry chamber.
Argentine growers are currently sowing corn for the 2020/21 season. The Rosario grains exchange forecasts a 48 million tonne crop when harvesting begins in April.
Santiago del Solar, a farmer in the bread-basket province of Buenos Aires, called the export suspension a “senseless” move that would damage business confidence.
“Less confidence leads to less production. We have enough corn to supply the domestic chain. This will irritate farmers,” del Solar said. “Is wheat next?”
(Reporting by Maximilian Heath and Hugh Bronstein; Editing by Chizu Nomiyama, Diane Craft and David Gregorio)
Argentina knows there is now a war against food.
See the increasing number of earth quakes in S. America, soon the Panama locks will be disabled. This is expected. Why such haste to implement the restrictions to migration and the implementation of the vaccine? Especially in the lowlands of Europe? Leaders of governments are in the know. And left us out…
it looked like artificial food shortage is now being implemented after the released of a ‘stronger virus’. ‘They’ are following their plan…..those bast%$ds!!!
This isn’t news to us didn’t we all know that was coming. This has been in the mix for a long time. Its just another mean monstrous trick by the snakes. keep going keep punching the goy’s where it hurts. As long as the fat bloated Ba$ta#ds get their three square meals aday sod the rest of us. They live in hope that we will start begging for the crumbs that fall from their food laden tables. Dream on.