Argentina sows more corn amid global glut

Argentina, the world’s third biggest exporter of corn, is likely to increase its production further after corn plantings increased 5.2%, according to statistics published by the ministry of agriculture.

The total area planted in Argentina is expected to grow to 8.9m hectares, up 440,000 hectares on the year before.

If corn yields per hectare stay the same it could mean Argentina will produce more than 50m mt of corn in the 2017-2018 season – a record high.

The country, which is the world’s fourth biggest producer of corn after the US, China and Brazil, produced 49.5m mt of corn in the 2016/2017 season and exported 29m mt.

The expansion comes amid historically low crop prices and high carryover stocks. As Argentina exports almost 60% of corn production, the figures are watched by traders and analysts for signals of future market balance.
Meanwhile wheat area is expected to reach 5.9m hectares, up 2.6% on the previous estimate in September but down 6.8% on October.