Miller Magazine Issue: 119 November 2019

26 NEWS MILLER / NOVEMBER 2019 Argentine wheat crop forecast cut to 19.8 mln tonnes Iraq replaces head of state grain agency Argentina’s 2019/20 wheat harvest is expected at 19.8 million tonnes, the Buenos Aires Grains Exchange said in its crop report, citing bad weather as the reason for cut- ting its previous 21 million-tonne forecast. “Toward the center and south of the agricultural belt, the season has progressed practically without rains of considerable mag- nitude, and with temperatures below medium levels, whi- ch has compromised crop development,” the report said. “Widespread frost and hailstorms have been recorded in areas where crops had been showing better performance, considerably affecting their condition,” it said. Argentine wheat harvesting has begun in northern areas centered in the province of Salta, where yields have been favorable, the report added. The exchange last month said it expects a 2019/20 corn harvest of 50 million tonnes. The Rosario grains exchange cut its corn crop forecast to 47.5 million tonnes from a pre- vious view of 50 million tonnes, citing dryness and policy uncertainty ahead of the Oct. 27 presidential election. President Mauricio Macri, a free-markets proponent elected in 2015 with wide support from farmers, lost to challenger Alberto Fernandez, whose Peronist party has traditionally favored higher grains export taxes and more government intervention in the economy. With higher taxes expected by farm industry leaders if front-runner Fernandez wins the presidency, some growers are moving to lower their risks by shifting away from planting corn in favor of soybeans, which are less costly to grow. Iraq, a major Middle East wheat and rice importer, has replaced the head of its state grain buying agency. Naeem al-Maksousi was replaced by Hassanein Mahdi Elwan, a document reviewed by Reuters showed. The reason for the replacement, which comes after a week of unrest in Iraq in which more than 100 people have been killed, was not clear. A government source told Reuters the move was routine, but a Middle East grains trader with close knowledge of the Iraqi market linked the change to the current protests over living conditions. “The government has to make some changes with all what is happening in the country,” said the trader, who declined to be identi- fied. The unrest in Iraq represents the biggest security and political challenge for Prime Minister Adel Abdul-Mahdi’s government since it took power a year ago. Iraq’s grain board is responsible for billions of dollars worth of wheat and rice purchases each year to supply the country’s massive food rationing program. Maksousi has he- aded the organization since 2018.The state buyer falls under the trade ministry and holds regular international purchasing tenders to import wheat and rice for the rationing program, which covers flour, cooking oil, rice, sugar and baby milk formula. The program was first created in 1991 to combat U.N. economic sanctions. Iraqis have taken to the streets in the last six days to protest poor living conditions which they blame on what they see as corrupt leaders. REUTERS