Argentina Meets About Extra Corn Export Quota, Group Says

Officials in Argentina, the world’s second-largest exporter of corn, will consider increasing export quotas at a meeting of government officials and agricultural producers today, an industry group said.

Officials also will discuss estimates for the corn crop and domestic demand this afternoon, Ider Peretti, president of the Argentine Producers Council, said in a phone interview today.

Argentina’s restriction on corn exports and drought will reduce the size of the crop this year, as export limits deter farmers from investing, said Juan Cruz Rey Kelly, an economist at the Argentine Rural Confederations.

The government may increase the quota by 3 million to 4 million tons from its current level of 7.5 million tons, Cruz Rey Kelly said in a phone interview today. A higher quota would increase inflows of dollars from export sales, easing pressure on the peso, after the government’s seizure of control of oil producer YPF SA (YPFD), he said.

Argentina’s harvest may shrink to about 21.5 million tons in the year that ends Sept. 30 from 23.6 million tons in the prior year, according to data from the U.S. Department of Agriculture and the International Grains Council.

To contact the reporter on this story: Heather Walsh in Bogota at hlwalsh@bloomberg.net

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.