Buenos Aires, September 17th. During August, the Ministry of Agriculture, Livestock, and Fisheries authorized corn exports by 8.16 million metric tons, the largest monthly volume since January 2016, when Mauricio Macri’s Government just taken office and export taxes had been eliminated.
According to the RIA Consultores weekly report, since August 11th, when primary election occurred in Argentina, and until September 13th, trading companies solicited licenses to export 9.46 MMT of corn. This volume heavily contrasts with 5.60 MMT granted in the same period of 2018 and with 2,00 MMT in 2017.
Even though in this 2018/19 campaign corn output jumped to 48 MMT from previous 31.7 MMT and 39.8 MMT in the 2016/17 season, it is possible that exporters are accelerating the operations anticipating possible changes in the economy if a new government takes office December 10th.
The brutal Peso depreciation, a foreign debt close to the default, increasing poverty, the annual inflation rate in acceleration, interest rate surpassing 85%, and an economy in the recession suggest that the new government must take severe economics measures, perhaps increasing the export tax rates from some products like cereals, which are used by the milk, meat and flour producers. This could help to explain why grain trading companies and farmers speed up their sales.
The Chinese company Cofco headed the list of granted licenses in the analyzed period with 1.85 MMT. ADM occupied second place with 1.35 MMT and Cargill, the third place with 1.22 MMT. Behind these companies, Bunge, LDC, and ACA (the largest farm cooperative) were granted from 0.86 to 1.06 MMT each one.