(Photo: this year, President Macri visited Vietnam, the largest buyer of Argentine corn)
Buenos Aires, April 22th. An expected 55 million metric tons corn record harvest is filling with optimism the mind of Government officials due to exports woul jump this commercial year to 30 MMT versus 23 MMT during 2018/19 season.
Now, it is forecasted that Argentina will reach the podium of global corn exporters, climbing to the second place, after the US and surpassing the regional competitor Brazil.
But, which are the largest costumers of Argentine corn? According to the AgroIndustry secretariat’s statistics, during 2018 (Jan-Dec) the country exported 21.3 MMT. The largest costumer was Vietnam, which acquired 4.12 MMT or 19% fo the total.
Algeria was the second destination acquiring 3.14 MMT (15%) while Egypt occupied the third place with 2.48 MMT (12%). This three countries plus Malaysia, Saudi Arabia, Chile, Morocco and Yemen represented 69% of 2018 exports.
“We are not viewing any problem to sell this record volume of corn”, the deputy secretary of Agricultural Markets, Jesús Silveyra, told last Wednesday in a press conference where the 145 MMT record harvest was announced.
But as harvest volume grows, prices are declining. The Buenos Aires corn FOB prices are now fixed at US$156 per ton, versus 193 dollars a year ago. This implies that the value of 2018/19 corn exports could round US$4.680 million versus a theorical value of US$4.439 million in the last commercial season.
A source from the corn value chain told to www.eFarmNewsAr.com that market already discounted the large harvest in Argentina and Brazil via prices. “We are waiting for the impact of floods in the Corn Belt to know if the US farmers will reduce the planted area. This a bullish factor for the corn price”, the source said.
After remarks the importance of Vietnam as the largest corn client, he added that local exporters are waiting to retake the exports to the European Union, after the domestic authorities banned an insecticide which its residues were present in corn cargoes and determine the close of that market.