Argentina Backtracks on Corn Export Ban
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01/14/2021 |
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In mid-December the Government of Argentina imposed a ban on the export of corn. The action was an attempt to retain corn for domestic consumption as human and livestock feed. This attempt to regulate commerce created a backlash from farmers who were deprived of the benefits of increasing corn prices on the international market. Argentina desperately needs foreign exchange given the ongoing economic crisis precipitated by mishandling by the socialist government.
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Argentine Farmers Protest Policy on exports |
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 It is obvious that precipitously canceling exports would result in erosion of confidence among importing nations currently depend on Argentina for their requirements of corn and soybean meal. Workers at soybean crushing plants and export terminals in the Port of Rosario recently returned to work after a strike in December extending into the current month. This action precipitated by inflation was partly responsible for a sharp rise in corn and soybeans on the CME demonstrating the interconnectivity of the World’s commodity markets.
The government has now imposed a 30,000 metric ton cap on daily export sales of corn after rescinding the blanket ban.
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