Argentine corn exports give support to prices with scheduled shipments for the 2016/17 marketing year reaching 15.6 million tons and just over 4 million tons being unloaded at the Up River Rosario terminals ports between July and the end of August.
According to data provided by the NABSA maritime agency, shipments accumulated since March 2017 total 15.6 million tons of corn, almost the same volume as last season by this time, but with an outstanding difference in the shipments timing. While 2016 exports surpassed 2017 totals by 1.4 million tons between March and June, exports made in 2017 in the July-August window so far have surpassed those of last year by 1.5 million tons.
This has happened because of important changes in grain marketing policy made between the end of 2015 and the beginning of 2016, when shipments were abnormally high. Thus, with the heavy depreciation of the peso and the elimination of exports taxes, farmers had sold not only that current harvest but also previous ones they had stored arvest time.
However, corn production for this season is higher than in 2016 and the harvest has been delayed by wet conditions. According to the Ministry of Agroindustry, corn is 86% harvested, above the 71% recorded by the same time last year, but well behind the 93% of the 2014/15 season. It is expected that in the upcoming weeks a large volume of the cereal will be discharged and dispatched from the Up- Rivers ports.
To corroborate the data above, we can observe corn delivery by truck between July and the few days of August, which according Williams Entregas total 53,091 units, a 36% year-over-year rise that could represent an additional 4 million tons dispatched in just over a month.
Demand strength has supported corn prices despite of seasonal harvest pressure, the fall in global export prices and the stability of exchange rate.
In the Rosario cash grain market, corn bids at AR$ 2,400 triggered sales. More than 70,000 tons were traded during the week, but some buyers paid up to ARS 2,450 per ton depending on volume. Open values for new corn crop stood around USD 147-148/ton, far from what sellers pretend. According to SIO Granos, 55,000 tons of corn with delivery in the Rosario area were traded in a single day at a USD 152 per ton price level.