Argentina reached record volume of exports commitments of wheat at the beginning of June, when foreign sales recorded for 8.9 million tons, 30% more than last year and almost two times the average tonnage of the last five years. The volume even surpasses the 8.5 million tons recorded at this stage of the 2011/12 season, when Argentina achieved the record of wheat exports with almost 13 million tons.
Two factors combined to allow the great performance of the wheat exports. On one hand, the increase in production that came after the reduction of export taxes and the elimination of tacit exports quotas, as well as the sharp devaluation of the local currency that took place almost a year and a half ago. On the other hand, the higher investment producer made this year to monitor the development of the crop that resulted in better quality (measured by its protein content and hectoliter mass, after three consecutive years of sharp declines.
The graph below shows monthly and cumulative exports in each crop season, available up to April 2017. It can be seen that the dispatches of the three months from December to February for the current commercial campaign far exceeded those of the same period on the previous year. For April, exports summed up 8 million tons, 63% above the accumulated of the previous season and 140% above the five years average.
In relation to the next crop season, the dry spell of the last few days allowed to advance firmly with seeding in the core producing area, although conditions are still highly heterogeneous according to soil moisture accumulated in each field. To date, overall progress in the region reaches 35%, with a tentative surface area of 900,000 hectares. At the national level, according to the Ministry of Agriculture, seeding reached 18% of total intended area, which is estimated in between 5.3 to 5.5 million hectares.
Corn gets ready for the July/August avalanche
Everything is ready for Argentina’s exports of corn to reach a historical record in the current commercial campaign 2016/17. With an exportable surplus of 23 million tons and prices that have been gaining competitiveness so far in June, it is estimated that between the second half of June and the next three months to come more than 10 million tons of corn will be delivered to the Up River terminal ports, and shipped from there to the world.
So far in 2017, the entrance of trucks loaded with maize accumulates a smaller volume than the last three years but this is due exclusively to the meager entrance of goods of the first quarter of the year. In fact, between January and March of this year, corn delivered at the Up River plants added more than 50,000 trucks according to Williams Deliveries (which counts the entrance between 00:00 and 06:00 of each day, representing around 50% of the total entry during the year), almost half what was registered the year before and 12% less than the average of the last three years. Following the strong momentum of sales of Argentine corn in the 2015/16 commercial year, corn stocks at the beginning of 2017 (before the harvest took place) were very tight, explaining much of this contraction.
Between April and June, however, the arrival of trucks with corn to the terminal ports around our city exceeds 65,000 units, 50% more than the previous year's reception and 42% above the average of the last three years, only surpassed by the very exceptional crop year 2013/14. Thus, if we consider the data presented in terms of commercial crop years (that is, between March and the 8th of July each year, last data available for 2017) the entry of trucks loaded with corn in the 2016/17 year amount to 107,630 units, 25% more than the preceding year and 40% above the average of the last three years.