A late rush to plant corn prompted the Buenos Aires Cereals Exchange to raise its 2015-16 Argentine corn area view Thursday.
The exchange raised its acreage estimate by 9% to 10.3 million as growers responded to the better prospects for the grain following the end of corn export tariffs and quotas and the devaluation of the Argentine peso.
Acreage will still be 9% lower than last year though.
Immediately following his surprise election win in December, Argentina's new president, Mauricio Macri abolished the 20% tax on corn shipments and later scrapped a quota system for export. He also allowed the Argentine peso to devalue by 40%. These factors led to a dramatic jump in local prices.
By mid-December, corn planting was already two-thirds complete, but those who planted late corn or employed it as a second crop chose to increase area.
Planting is now 89.4% complete, according to the exchange, and a lot looks in generally good condition across most of Argentina's grain belt following abundant rainfall in recent months.
Alastair Stewart can be reached at email@example.com
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