Rains in Argentina helped farmers to plant 23.2% of the area planned for corn in the 2021-2022 cycle, announced the Buenos Aires Cereal Exchange, at a time when producers are struggling with a new export policy that could remove incentives to the sowing.
The main cereal producing provinces, such as Córdoba, are enjoying good soil moisture, the stock exchange said in its weekly report. Argentina is the second exporter of corn of the world.
Corn exports remain “open” despite a policy announced this week that prioritizes crops already harvested over future sales of the next crop, the Agriculture Ministry said on Tuesday amid a dispute with rural leaders.
Of the 55 million tonnes of corn expected to be harvested this season, a record 38.5 million was sold as producers scramble to lock in high international prices as local farm costs rise due to high inflation.
Farmers consider that the new policy is an unnecessary intervention in the market, with the aim of curbing increases in local food prices before the mid-term legislative elections that will take place in November, after the defeat of the ruling party in the primary.
Although agricultural groups said the new policy will put downward pressure on planting corn this season, Esteban Copati, chief analyst at the Buenos Aires Cereal Exchange, noted that many growers had already made their 2021 planting decisions. -2022. “It’s a bit late to change your mind,” he said.
Inflation is 52.5% per year in Argentina. Consumer prices rose 3.5% in September alone.
Meanwhile, the rains that fell this month improved moisture reserves in planted areas, the Cereal Exchange said. “And the surface humidity has been replaced in areas to be sown corn in the provinces of Córdoba, Santa Fe and Entre Ríos,” he said.
In the northern and southern areas of the country, corn planting is in its final stage.
“Towards the provinces of Córdoba and San Luis, the rains of the last week have replenished the water supplies, allowing the planting to continue,” he added.
While “in the north-central province of Santa Fe, planting exceeds 32% of the projected area,” the report said.
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