Argentina now has the cheapest corn prices in the world

Published 2024년 9월 17일

Tridge summary

Argentina is currently offering the world's lowest prices for international corn due to both commercial and climatic factors. The country's exporters are set to ship 2.85 million tons of corn in September, but the flow of the Paraná River is posing logistical challenges, leading some ships to carry partial loads. Despite the challenges, global demand for US corn is high due to concerns about South American export supplies in the first half of 2025. However, Argentine farmers face difficulties in planting for the 2024/25 harvest due to water deficits, increased fertilizer prices, and disease risks. Furthermore, the Argentine government's decision to maintain high export duties on agricultural commodities results in lower local prices, discouraging investments in agricultural technology.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Argentina has the cheapest international corn prices in the world – due to both commercial and climatic factors – despite the uncertainty about the future of the new 2024/25 harvest. Export prices for US corn are recovering at the start of the harvest in that country, which is great news for farmers. Global demand is rushing to source corn in the US due to fears that South America will not have a considerable exportable supply of the cereal in the first half of 2025. In this sense, the USDA's official projections of the 2024/25 exportable corn supply from both South America and Ukraine are markedly "inflated" and importers are very clear about that. Argentine exporters have scheduled corn shipments of 2.85 million tons for this month of September (versus 1.98 million tons of soybean meal), but the weather is playing a trick on them. The abrupt drop in the Paraná River is making it extremely difficult for ships to enter the Hydroway, which is the main export vehicle present in ...

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