USDA-FAS GAIN Report AR2021-0017 dated July 20th provided details of Argentine grain production including corn. Argentine will produce 2.03 billion bushels of corn (51.5 million metric tons) from the harvest area of 16 million acres. The FAS post in Buenos Aires predicts a yield of 127 bushels per acre and 73 percent of the market year production will be exported.
Farmers in Argentine are paying significantly higher prices for fertilizers and herbicides. Since the economy is only recovering at a slow rate from COVID, domestic consumption will be reduced.
Low water level in the Parana River is impeding exports from the Port of Rosario Complex responsible for handling 80 percent of shipments, as vessels are only loading to between half and two-thirds of capacity.
The extent of shipments by Argentine and the CIF cost to importers directly influences the price of domestic corn.