In Commodity News 09/01/2016
Argentina’s 2015-16 wheat output is now forecast at 10.1 million tons compared with a previous estimate of 9.5 million tons, the Buenos Aires Grains Exchange said in its weekly crop report.
The exchange cited higher than expected yields as the reason for the revision.
Exports of the grain from Argentina are expected to climb after last month’s devaluation of the Argentine peso, which improved the international competitiveness of Argentine farmers.
President Mauricio Macri, who was inaugurated on Dec. 10, has removed limits on how much corn and wheat Argentina can export, the latest measure aimed at revitalizing the economy of the grains powerhouse.
Macri promises free-market solutions to Argentina’s long list of economic problems.
He has also eliminated taxes on corn and wheat exports as part of his effort to encourage crop rotation after years of soy being over-planted on the Pampas farm belt.
