Analysis: Argentine wheat exports drop, low supplies remain

02.08.2013

Argentina, usually a key supplier of wheat to the world market, is still facing a shortage of the grain with the local government controlling exports in order to guarantee domestic supply as well as keep local prices from rising further.

"Following a below-average 2012/13 harvest, exports out of Argentina are now being contained in attempts to cap rising local prices," an International Grains Council (IGC) member told The Public Ledger.  "This means traditional buyers of Argentine wheat, most notably Brazil, are having to fill their needs from other origins.  It's one of the reasons that US export commitments are so high at this early stage of their marketing year, along with China's recent buying of course."


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