Argentina, the world’s third largest corn exporter, said on Wednesday it would suspend corn exports until the end of February 2021 to ensure adequate local supplies, sending corn futures prices to six-year highs.
In a statement on its website, the government said it had released 34.23 million tons of the 38.5 million tons of corn it expects to export in 2019-2020, but wants to keep the remaining 4.27 million tons for domestic demand because supplies are usually scarce in the summer.
Terry Reilly, a senior commodities analyst, says traders are now turning their attention to what is still very unfavourable weather in South America. Meteorologists say rain has fallen in parts of the agricultural belt of Brazil and Argentina, but the main producing areas are still dry.
Corn futures on the Chicago Board of Trade hit a 6 1/2-year high on Wednesday after Argentina announced it was suspending corn exports.
Recent Comments