Argentine Barley Price Dropped by 25.3% YoY in Mar-24 Amidst Promising Grain Production and Extra Export Duty

The wholesale price of barley (for feed) in Necochea Partido, Argentina, decreased by 25.3% YoY to USD 0.19/kg in Mar-24. This price decrease can be attributed to the promising production forecast for corn and wheat in the 2023/24 season. In addition, the country's new libertarian government imposed a 15% increase in export taxes, leading to concerns regarding barley exports in 2024, adding further pressure on prices.
In Mar-24, the wholesale price of barley (for feed) in Necochea Partido, Argentina, was USD 0.19 per kilogram (kg), decreasing by 25.3% year-on-year (YoY) compared to USD 0.25/kg in Mar-23. The prices remained unchanged from Oct-23 to Feb-24 at USD 0.20/kg and dropped by 15% month-on-month (MoM). The main reasons for the price decline in Argentina can be attributed to the promising outlook for other grain production, such as corn and wheat. According to the United States Department of Agriculture (USDA), the country will produce 57 million metric tons (mmt) of corn in the 2023/24 season, an increase of 2 mmt compared to the previous estimate. Similarly, wheat production for the 2023/24 season is forecast to increase by 400 thousand metric tons (mt) to 15.4 mmt. Even though barley production is expected to be unchanged, the price was negatively affected. Moreover, Argentina's new libertarian government's recent imposition of a 15% increase in export taxes has raised concerns within the industry. There are worries that Uruguay may surpass Argentina in barley exports in 2024, adding further pressure on prices.