Argentina cleared for the first time to export wheat to China

Argentina's Ministry of Agriculture, Livestock, and Fisheries announced Friday the country had taken the first steps towards paving the way for future wheat exports to China.

"In an important step for Argentine exports, the General Administration of Customs of the People's Republic of China (GACC) included Argentine companies authorized to export wheat in the Online Quarantine Registration System of Establishments authorized to export vegetables, animals, and their products that enter China," a press release from the ministry read.

Australia and Canada currently serve as the primary wheat suppliers to the Chinese market, contributing 5.7 million mt and 1.8 million mt, respectively, according to the release.

Despite the challenges of a drought in the previous campaign, Argentina is expected to export 3 million mt of wheat in 2023, and a total harvest of 15.5 million mt is expected for the 2023/24 campaign.

The Buenos Aires Grains Exchange (Bage) said in a report Thursday that it currently sustains a production projection of 15.1 million mt for 2023/2024.

China is projected to import 12.5 million mt of wheat in 2023/24, the US Department of Agriculture (USDA)'s supply and demand estimates report predicted earlier this month.

Market participants Agricensus spoke to said no business has been done yet, and that the first shipment could take some time to occur.