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Argentina with more wheat

Аржентина с повече пшеница

Argentina's 2023-24 wheat production will be higher than originally expected as conditions have improved, according to a report by the US Department of Agriculture's Foreign Agricultural Service (FAS).

Now, future production is estimated at 15.4 million tons, or 2.6% more than the USDA's previous estimate.

Wheat production in 2022-23 is estimated at 12 million tonnes, 550,000 tonnes less than official estimates. Several local traders estimate production to be even lower, between 10.8 million and 12 million tonnes. A significant amount of unsold wheat has quality problems and much of it is mixed with good quality wheat from the new crop, FAS believes.

Consumption in 2023-24 is estimated at 6.9 million tonnes, due to increased use of flour. Domestic consumption of wheat flour grows slowly, especially in periods of high inflation.

"Many consumers are switching from higher-priced food products to cheaper foods with higher wheat flour content," the analysts said. "This is forecast to continue until 2024, leading to an increase in flour consumption as inflation is expected to continue."

Exports for 2023-24 are estimated at 10.2 million tonnes. That would be a significant recovery from last year, which was the lowest since 2013-14.

Corn production in 2023-24 is estimated at 57 million tons, 2 million tons more than the official USDA estimate.

Dry conditions at planting initially limited early maize acreage in many regions, but current crop conditions are very good after normalizing rains, FAS said.

FAS now estimates 2022-23 corn production at 35 million tons, 1 million tons more than USDA's official estimates.

Exports in 2023-24 are expected to be 41 million tonnes, while exports in 2022-23 are expected to be 23.4 million tonnes.

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