Argentina: Restrictions on the export of wheat and corn are eliminated

Published 2024년 5월 13일

Tridge summary

Argentina, a major agricultural exporter, has done away with the volume restrictions on wheat and corn exports, as stated in a Ministry of Economy resolution published in the Official Gazette. This move reverses a 2022 regulation that aimed to shield the local market by decoupling local prices from international fluctuations but ended up negatively impacting grain markets and relations with major trading partners. The resolution also highlighted that the previous regulations were ineffective in stabilizing food prices and caused unintended consequences. Meanwhile, the Rosario Stock Exchange forecasts a decrease in corn production due to a pest outbreak, leading to a reduction in export projections.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Argentina, one of the world's leading agricultural producers and exporters, removed volume restrictions for the export of wheat and corn. This measure was made official through a resolution of the Ministry of Economy, published in the Official Gazette this Friday. The Bioeconomy Secretariat of Argentina announced in a statement that the repeal of a 2022 regulation aims to eliminate “one of the most distorting instruments in the commodity market.” In this sense, the organization explained that the 2022 regulations, which established export quotas for wheat and corn, intended to protect the domestic market by decoupling local prices from international increases. The resolution published this Friday “eliminated this instrument that imposed restrictions on exports,” the ministry clarified. “The eliminated regulations negatively affected the functioning of grain markets, by generating lower prices, production and exports, and deteriorated the relationship with the main trading partner ...

Source: Defrentealcampo