Argentina: Wheat exporters fear a potential government suspension and market books a record for the month
Wheat
Argentina
Regulation & Compliances
Caio Alves
Published Jan 7, 2021
Wheat export registrations from Argentina boost as exporters get concerned that the government could again suspend the authorisation of export licenses, following the country's logistic complications and the suspension of old corn crop export licenses in late December.
Exporters have registered 1.43 million mt of wheat in the two working days since the start of the new calendar year, including 730,190 mt booked on January 5.
This is 38% higher than the total registrations made during the November-December period, and a huge increase compared with January 2020, by then export registrations reached 1.4 million mt only by the end of April, meaning that the country is practically 4 months ahead. Rosario Board of Trade (BCR) estimates the country will export 9.6 million mt over the current marketing year, leaving little surplus for future exports, while new crop stocks registered for export averages at 7.2 million mt.
The increase in registrations, along with overall market sentiment, and the already heated demand pushed wheat offers around $3/mt higher in Argentina's FOB Up River market, to reach $261-$262/mt for February loading.
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