Argentina has seen an increase in corn exports to the U.S. as the latter country continues to recover from the 2012 drought, with the first shipments already on their way, according to reports.
The U.S. usually imports little corn from Argentina, with less than 72,000 metric tons of the grain imported in 2012. In the two years before that, no corn was imported. "The United States lost one third of its corn production, so there's a black hole there," said an industry source, who also said that Mexico is a favored destination for Argentine corn these days due to thin U.S. supply. Mexico usually obtains more than 90 percent of its imported corn from the U.S.
In Argentina the average spot price for corn at the country's ports was $276 per metric tons free-on-board on March 26. U.S. corn at the Gulf Coast was offered at about $315 per metric ton FOB. Argentina, the world's number three corn supplier, expects a 2012–2013 corn harvest of 25.7 million metric tons compared with 21.2 million metric tons in the 2011–2012 crop year, according to official forecasts.
