Argentina expected to produce 50 million tons of corn during 2019/20 harvest

According to the Rosario Exchange, the corn harvest started just two weeks ago and is forecast to be the second largest harvest in history, with an estimated 50 million tons expected to be reaped.

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Of this total, 67% (or 33.5 million tons) will be earmarked for the foreign market. It is expected that 12.4 million tons will be used as animal feed, which corresponds to 25% of production. The industry should absorb the remaining 8% of the product, or 3.8 million tons, of which 1.7 Mt should be used as an input in the production of ethanol and other uses of ethyl alcohol, and 2.1 million tons as input for dry and wet grinding as well as other industries.

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If 33.5 million tons of corn are indeed exported as forecast, Argentina will have shipped the second largest volume in its history, behind the 37 million tons exported last year. With this, Argentina consolidates itself as the fifth largest corn producing region in the world for the 2019/20 harvest, behind the United States (347.8 Mt), China (260.8 Mt), Brazil (101 Mt) and the European Union ( 65 Mt). In value terms, at current prices, this would represent an export revenue of approximately US$5.5 billion, about 9% below the estimated revenue of the previous year and in line with the drop in volume.

The future of international trade, however, is currently highly uncertain as a result of the COVID-19 coronavirus pandemic. Measures taken to stem the spread of the disease and fear of its effects have caused a notable decline in global consumption and a sharp correction in prices. For this reason, the correction of the export quantity and price projections is subject to adjustments.

 

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