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Weekly Report - 02 December 2010 (WR-10-48)

TRACKING TRENDS

ARGENTINA | Corn sales to Russia. Argentina will sell corn to Russia again after a three-decade hiatus. Russia has ordered 300,000 tonnes of corn for animal feed for January 2011, the Argentine foreign ministry announced, and might require up to 10 times this figure in the months to follow. Russia suffered from its worst drought in over a century last summer and banned exports of grains. Argentina is predicting a record corn harvest of 22m tonnes this year.
Russia is very unlikely to become a long-term customer but if Argentina manages to meet Russia's demand after the March-April harvest, even a one-off deal of this magnitude would provide an opportunity for other exporters. This requires, of course, that Argentina prove itself as a reliable supplier. The long-running dispute between the government and Argentina's four main farming unions over export taxes, which has never been resolved, could complicate matters.

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