World Grain - December 2022 - 18

COUNTRY FOCUS
previous IGC report and unchanged from the year before.
The IGC forecasts Argentina's total grains exports in 2022-23
at 57.2 million tonnes, revised down from 57.9 million, and down
from 67.9 million tonnes the year before. These numbers put the
country as second to the United States in grain export volume.
Argentina's wheat exports are forecast at 12 million tonnes,
revised down from 12.5 million forecast earlier, and down on the
previous year's total of 18.7 million tonnes. Forecast maize exports
are unrevised at 39.2 million tonnes, down from 42.7 million
the previous year. Barley exports are forecast at 3.7 million
tonnes, revised down from 4 million forecast a month earlier and
the previous year's export level of 4 million. All three figures
include 600,000 tonnes of malting barley, with the rest for feed.
Exports of sorghum in 2022-23 are put at 2.3 million tonnes, revised
up from an earlier forecast of 2.2 million, but down on the
2.4 million exported the previous year.
Rice exports are forecast at 300,000 tonnes in 2023, a figure
the IGC has not revised since its previous report, and which compares
with 400,000 tonnes exported in 2022.
Argentine production of soybeans in 2022-23 is forecast at 48
million tonnes, unrevised from the previous month's prediction
and up from 44 million the year before.
Production of sunflower seed is put at 4.4 million tonnes, revised
down from 4.5 million forecast a month earlier, with the
previous year's crop at 4 million.
Exports of soybeans are forecast at 5.2 million tonnes, revised
up from 4.6 million in the previous IGC report and up on the
previous year's shipments of 3.4 million.
In an annual report on the grains sector, the USDA attaché explained
why farmers might be inclined to limit wheat planting.
" Despite high wheat prices, which increased almost 50% in
dollar terms from a year ago, returns on rented land are expected
to be very tight in most cases, " the report said. " There are many
factors that are playing against an increase in planted area. "
The report highlighted an additional $200 cost per hectare
from the rise in fertilizer prices.
" As wheat demands a large investment at a time where financing
has gotten more expensive, farmers may opt for a crop with
lower input expense, " the report said. " Wheat costs are signifiArgentina
soybean production, exports
(in 1,000 tonnes)
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Exports
Production
*Projected
cantly higher than those of soybeans, while wheat's expected return
is less than half.
" There is currently a strong interest in alternative winter crops,
such as peas, canola and barley that do not have the government
price controls that have been imposed on wheat. The Argentine
government influences the local wheat market using several
economic tools in an attempt to keep domestic bread and pasta
prices low despite rising grain prices. Because of these interventions,
farmers are not receiving international market value. These
measures are in addition to the 12% tax on wheat exports. "
Flour milling sector
According to information published by the Rosario exchange
(Bolsa de Comercio de Rosario) in December 2021, wheat is
processed in 285 milling plants across the country. However,
Molinos Cañuelas SACIFIA, the biggest company in the sector,
has a share of production that reached 22.4% in 2020-21, making
it the only sector company to reach over 10%.
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December 2022 / World Grain / World-Grain.com
2022-23*
2021-22
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
Source: USDA's Foreign Agricultural Service
https://www.world-grain.com/media-guide
World Grain - December 2022

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