Argentina Raises Corn Quota to Less-Than-Expected 300,000 Tons

Argentina raised the nation’s corn export quota by 300,000 tons for crops from the 2010-2011 season, less than the increase expected by the nation’s corn association.

The higher quota applies to crops that have already been harvested, Agriculture Undersecretary Oscar Solis said yesterday in a phone interview from Buenos Aires. The government also set an export quota of 7.5 million tons for crops from the 2011-2012 season, which are currently being planted, Solis said.

The additional 2010-2011 quota is below the estimate of a 1.5 million-ton quota increase predicted by Maizar, Argentina’s corn association. The amount of corn authorized for export is lower because the previous quota of about 12 million tons has not been met and more exports can still be allowed if needed, Solis said.

Argentina is the world’s second biggest exporter of corn, behind the U.S.

The nation’s government requires that corn producers earmark 8 million tons per year for domestic consumption. Output in Argentina was about 21 million tons in the 2010-2011 season. Export quotas are announced over the course of the year.

Maizar represents members of the entire corn industry, from farmers to exporters as well as seed companies, mills and traders.

To contact the reporter on this story: Rodrigo Orihuela in Buenos Aires at rorihuela@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net