February 2020- Corn is one of the most important crops in Argentina. Also has a big impact in many other industrial application like meat chain or energy. Argentina is a big exporter of corn, because local consumption is not enough and industry isn’t big as soybean crushing industry is.
As a media we had many articles related to forecast, experts insights, and data related to every part of the cycle, the seed, the harvest and the results. We are focused in seed industry products in the crop, and how the managers and CEO thought on the local market.
We published also many of the new developments in Argentina. New areas are possible to add to the actual situation in place that many times were believe uneconomical or impossible.
In this following summary you could make a wide and basic idea of many topics we published before:
Corn futures trade expansion:
- In Argentina the futures market is not big as America, but we took notice that interesting things were happening in November of 2019, the increase of trading was a critical issue to write about. Farmers have not the chance to cover easily it´s own risk to start trading an make safer its investments every season. However, the corn future contracts ha expanded in a bigger quantity than soybean does.
Click below to understand better how have evolved Argentine futures market:
Who is the biggest buyer of Argentine corn?:
- In the last months of 2019, October 2019 we published an article related to commerce.In the last two years, India and Vietnam appear as big opportunities for Argentina, their growing economies and food demand, also the expansion of meat, pork, and poultry had an impact in prices and commerce. Cambiemos administration also had visited to the country looking to add more commerce from this country. We have the data that showed reason for this enthusiasm, Vietnam was the biggest corn client for Argentina´s corn:
- The international consumption of Argentine corn have another two countries, Egypt and Algeria. This data has a significant importance to understand which is the Argentine commercial relationship, also in the evolution of prices and volume of exports. Many countries also buy corn from Argentina as our local neighbor Chile, click here to understand of global distribution of corn:
The infrastructure challenge:
- One of the biggest problems in the cost locally are based in lack of investment in infrastructure. Many critical moments, nor roads or either ports have the capacity to answer the need of exports. The use of trucks and distance to ports affect many times the investment for every farmer. Only the global prices affect the decision to add or not hectares every season. Good years as 2019, this is shown more clear. Click here to see the figures and what happened when the grains reach the exports, click here:
Patagonia and the corn production:
- On October of 2019, we wrote about new production frontier. Rio Negro was one of the first provinces established as soon as Argentina expanded to the south adding a big part of the country, Patagonia. The agricultural production of the province in part was limited by the infrastructure and different costs like Pampa Húmeda has, lower and easier to produce. Now as traditional local economies facing difficulties as high taxes and demanding and expensive labor force complicate to produce fruit. Corn is considered itself as a good source for value in breeding cattle production.
Interesting yields good as “Corn Belt” has in the United States also motivates to expand and improve conditions for this crop, for more information click here:
Export taxes have a great impact on Corn export behaviour:
- Farmers and grain export companies know that two that two dynamic could play hard in the results of a season. In one hand, peso devaluations that have happened in 2018 and 2019 have a great impact in the results and cost of producing corn in Argentina. In the other hand, the need for fiscal sources affect the final result when the grain is really exported. In many cases to export at a lower prices first is better to wait and have a tax impact that hurts rentability. In September of 2019, the changes in policies that the next administration were going to do to pay the external debt were a signal to sell first. Click here to know more:
- You can also check this article that was written first for additional information and context:
A good year for corn exports:
- The first part of 2019 show the good results of the previous season. In 2018 an important drought have hurted soybean and corn harvests. In 2019, the result was optimal in exports and also global prices have helped to make more interesting to export. This show an expansion in exports. The volume were important for the actual season and also confirm the results in many provinces like Cordoba that had their own record in the last year. Please click here, this data was published on the last July, click here:
Many interesting launchings and business strategies in Corn seed market:
- The German company KWS, have an aggressive and interesting expanding strategy to duplicate, its market share in Argentina. In August, we published the last expansion of the company. A new plant for processing seed bags and the investment in modernization, the result was more capable company centered in R+D, that is developed locally and the will to expand the offer to Argentine farmers. Click here to understand how important was this decision for the European company:
- KWS also in 2018 told us, how corn reacted to the extreme drought, sometimes performing better than soybean does. This information of the local market and the expertise of their managers were published in the critical moment of March 24th, two years ago:
- Expoagro is one of the main events in Argentine farming exhibitions, there many companies like Corteva exposes their latest products. On 2019, Corteva presented the Power Enlist technology we published the details on March of the last year, click: