Sales of the upcoming wheat crop in Argentina are currently the slowest in seven years, reports Apkinform according to Reuters.
Thus, according to the official estimates, as of September 13, the country’s agrarians sold only 1.51 mln tonnes of the future wheat crop, which is the lowest result since 2016/17 MY and significantly lower than the result in the same period last season (5.28 mln tonnes).
“The low sales are partly explained by the political uncertainty regarding the new government, which will be formed after the presidential elections in Argentina on October 22,” said Miguel Cain, the president of the grain chamber ArgenTrigo, adding that two of the three main presidential candidates promised to abolish the export duty on wheat, which is currently 12%.
Another factor that restrains wheat sales is weather conditions. Thus, the natural phenomenon of El Niño brought precipitation to Argentina, but some areas under wheat in the country need more precipitation, which can compensate for the rains expected in October. This climatic uncertainty is keeping farmers from actively selling the upcoming grain harvest, given last year’s negative experience. Back then, many farmers started selling wheat quite early but then failed to fulfill their obligations as crops were severely damaged by the drought.
It is worth reminding that according to the forecast of Buenos Aires Grain Exchange, the wheat harvest in Argentina in 2023/24 MY may reach 16.5 mln tonnes, which is higher than the previous harvest, but lower than in 2021/22 MY (22.4 mln tonnes).
Source: Apkinform