Stop exports from Argentina to the last day of 2020 have led to an explosive growth of prices

the Ministry of agriculture of Argentina has temporarily suspended registration of export sales of corn with a delivery date before March 1, 2021 (the beginning of the season 2020/21) due to dry weather conditions and uncertainty with the future harvest and sufficient for domestic consumption of corn stocks.

This decision has led to the rapid growth of prices on the US exchanges, where the quotation in the last week of 2020 and so rapidly increased, and even the end of the strike and the resumption of Argentina's exports are unable to stop the growth.

Thursday at the exchange in Chicago futures on corn grew by 2.2% to of 193.3 $/t, that of wheat by 1.5% to 238,3 $/tonne, of soybeans by 1.8% to 491,8 $/t soybean meal by 1.1% to 480,8 $/ton, soybean oil – by 2.7% to 951 $/t

According to the agriculture Ministry of the country in season 2019/20 for export already was 34,23 million tons of corn from the projected 38.5 million so Because 4.3 million tonnes, which will provide enough for the domestic market the volume of proposals in January and February.

"This decision is driven by the need to ensure grain sectors, which use it as raw material in the processes of transformation, in particular for the production of animal protein: pork, chicken, eggs, milk", - the press service of the Ministry of agriculture.

depending on the development of supply and demand, and the prospects for the harvest 2020/21 MG the Ministry is planning to evaluate re-opening the registry.

According to the December USDA report, Argentina in 2019/20 Mr collected 51 million tons of corn from which they will be able to export 37 million tons Through dry weather in the next season corn crop will be 49 million tons, and exports will not exceed 34 million tons.

it is Expected that in the January USDA report will be lowered forecast corn production in Argentina, as local analysts estimate the next season's crop 40-45 million tons.