Given the possible lack of cereals in Europe due to the disruption in trade flows and the ban on exports from Russia that was added to that of Ukraine, Spain decided to relax phytosanitary barriers and seeks to approve emergency purchases of corn in Argentina and the United States. Can you supply Spain? Are cereals enough to meet the demand of the main buyers of Ukrainian corn and wheat?
Russia’s invasion of Ukraine has an impact on the agricultural policy of most countries, although a large part of the world’s grain production has been sold. Wheat and corn buyers are looking for new markets and commodity producers have an opportunity to export more.
The concern about the global food shortage, once again boosted the price of commodities in the reference market of Chicago on Tuesday.
Wheat futures accumulate a rise of 3.30% to US$ 416.12 per ton, corn futures a minimum drop of 0.13% and are trading at US$ 294. While soybeans fell 0.98% to settle at US$ 607.74 a ton in futures contracts for May.
Argentine wheat was harvested in December and exported mostly in January and February. Today there is only 10% of the production left as exportable quota and the next sowing season will begin in winter to be harvested around the end of November and the beginning of December.
In the case of corn there is more flexibility.
Can you take advantage of Argentina?
Despite the fact that the exportable quota is 25 million tons and 22.6 million tons have already been declared, that is, the country has 2.4 million authorized tons remaining “It is likely that they will increase the equilibrium volume once we have closed the production number,” said Tomás Rodríguez Zurro, an analyst at the Rosario Stock Exchange (BCR) Economics Department.
And he added that from the Stock Exchange they estimate that corn exports in the new campaign will be 33.5 million tons. If these yields are met, the Argentina could sell about 10 million tons of corn.
Spain imports between 8 and 10 million tons of corn annually, of which almost 4 million tons come from Ukraine.
If the country led by Pedro Sánchez had to go out and seek to cover everything that it bought from Ukraine to other countries, Argentina could provide it with a greater export quota.
After Ukraine decided to close exports of wheat, corn, chicken, eggs and oil, Russia took the same measure for foreign sales.
OROther countries that may want to buy cereals from Argentina are the Netherlands and Egypt, one of the main importers of corn from Ukraine.
The Chronicler-RIPE
