Demand improves Argentina’s wheat prices

At Rosario's Grain Exchange, depending on the quality of wheat, domestic flour processors purchase wheat at prices from 825 pesos to 865 pesos/ton, up from 808 pesos a week ago. The price of wheat for delivery in January 2011 was $170, up from $165 a week ago.

The first 2010/11 annual production forecast data released by the Ministry of Agriculture of Argentina predicts that Argentina's wheat production this year will be 101-1.12 million tons, which is far below the 12 million tons forecasted by the US Department of Agriculture.

The private sector's 2010/11 Argentine wheat production forecast ranged from about 90 to 14 million tons, and most agencies believe wheat production is between 11 and 12 million tons.

According to data from the Argentine government, Argentina’s wheat production last year was only 7.5 million tons, but the USDA’s forecast was 9.6 million tons.

According to the Argentine Ministry of Agriculture, the sown area of ​​wheat in the current year was 4.2 million hectares, an increase of 20.4% over the previous year. However, the low soil moisture content may limit the yield potential.