Argentina: Early barley 2022 production forecast is for about the same crop as in 2021

Concerning news for Argentina’s farmers was the government’s move to raise further the export tax rates for soybean products (meal and oil). Export taxes are a major revenue generator for the government and the move in soy products has raised questions about other crops (corn, wheat, and barley), RMI Analytics said in their late March report.

Drought conditions in the region have been addressed by widespread and substantial rains, the analysts reported.

RMI Analytics’ early production estimate for Argentina’s barley crop 2022 is for a similar crop as achieved in 2021 (5.2 mln tonnes). Low malting barley premiums could shift farmers to plant feed barley over malting varieties though.

Argentina’s barley prices are a bit lower for crop 2021 with little new business concluded despite quite some dialogue and exchange of bids/offers. The presence of buying interest validates the strong demand environment but with little left to sell in crop 2021.

For crop 2022, farmer selling is expected to match the past two years, with farmers reluctant to sell this early in the growing season. Later, when the willingness to sell develops, the preference is to sell feed barley due to low quality risk and fewer inputs.

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