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On Monday, Argentine truck drivers began an indefinite strike. They said that the freight charges for corn, wheat and soybeans shipped to the port could not catch up with the country's double-digit inflation rate.
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Argentina or corn exports affected by freight problems
[China Agricultural Machinery Industry News] According to foreign news on July 19th, an organization representing the interests of Argentine food exporters said on Tuesday that if farmers and truck drivers could not reach an agreement on freight rates, then Argentina’s corn export business may be released in the next few days. slow.
Argentina is the third largest corn exporter in the world.
Argentina or corn exports affected by freight problems
The inventory in the hands of the exporters can still be dealt with for a few days, but as the negotiations stalled and the deadlock did not seem to have any signs of ending in the short term, market concerns began to heat up on Tuesday.
Andres Alcaraz, spokesperson for the CIARA-CEC Export Corporation Chamber of Commerce in Argentina, wrote in an email: "Although the export sector is not affected by the conflict, if the strike continues, the export business may be negatively affected in the coming days."
At present, corn is the focus of the market, because the heavy rain in the Pampas grain belt has delayed corn harvesting and limited stocks.
The Argentine domestic grain exchange expects that the country will harvest between 27 and 28 million tons of corn this year, and so far only half of the harvest has been completed.
Argentina’s soybean harvest this year has been announced.
The truck driver asked to raise the freight rate by 31%. They said that such a large increase must be made to catch up with the speed of rising costs. Argentina is one of the countries with rising global inflation.
Catac's attorney, Hernan Difeo, said in a telephone interview: "The other party has not given their terms."
Planters are worried that the strike will lose Argentina's corn export competitiveness to Brazil, another major exporter.
Martin Fraguio, chairman of the Argentine Corn Industry Association Maizar, said: "This is very worrying."
“The slowing of the harvest has already caused the price of corn to rise. We don’t know that the strike will not make the price rise further.â€
According to the data, the FOB price of Argentine corn cargo in recent months was 188.29 US dollars per ton on Tuesday, much higher than the previous week's 172.15 US dollars.
Globally renowned food exporters such as Bunge Ltd, Cargill Inc., Louis Dreyfus and Archer Daniels Midland Co have export operations in Argentina, and Argentina's inflation rate has risen by 3.1 in just one month in June. %.
(Original title: Argentine exporter warns: truck drivers strike corn exports will slow down)