According to official sources, government of Argentina, despite numerous protests of local traders and farmers regarding intervention into country’s trade policy, still imposed a ban on wheat export harvested during 2012/13 MY. Even 370 thousand tons of grain already prepared for shipment have been banned; and, ordered to sell to local millers. As noted by international experts, such events were caused by soaring prices for processed grain, such as flour and bakery products, on the domestic market.
According to expert’s forecasts, such events are likely to entail even further reduction in the acreage of wheat in Argentina. Recall, that up until now farmers in Argentina were planning to plant 3-4 million hectares of land with grain in 2013/14 MY, while season earlier that number was about 6.5 million hectares. It is worth mentioning that the decline in sowing area will lead to reduction of gross harvest of grain; as well as it may have a negative impact on the global wheat trade.

According to data of Argentine Ministry of Agriculture, as of June 12 of the current year, the country has supplied about 3 million tons of wheat onto the global market, by contrast, at the same time a year earlier the number was 7.1 million tons. The overall volume of grain export may reach 5 million tons, against 11.3 million tons in 2011/12 MY.