News summary: Grain exports by Argentina have never plummeted as they have now for two decades, with maize and soybean crops showing the lowest export trends in the last twenty one years. 

The Rosario Stock Exchange (BCR) projects that Argentina’s exports for May could reach $71.566 million, a reduction of 4% compared to April and 19% year-on-year, due to further cuts in soybean and corn production in 2022/23 and a drop in wheat sowing intentions in 2023/24. In addition, monthly soybean and corn exports in April were the lowest since 2002.

The new estimate takes into account the latest production cuts for soybeans and corn, adjusted downward by 4 million tons and 3 million tons, respectively, according to the report released weekly.

Meanwhile, wheat planting in Argentina would be less than half the level recorded last year. This will cause a reduction in monthly exports in late 2023, especially in December, when a considerable portion of the next crop’s wheat is exported.

Finally, BCR analysts assess that Argentina’s exports of the coarse crop, which includes corn and soybeans, have the lowest volume in 21 years.

International price levels only partially cover the cut in quantities. In this sense, the level of exports in dollars last April for soy and corn would be almost 43% below the level of April 2002. However, if compared to the average of the last five years, the cut in dollars is around 5%.

Source: Canalrural.com.br