Argentina is shipping out grains at a strong pace this season as record sunflower exports and booming corn sales help absorb one of the country's biggest harvests in years, the Rosario grains exchange said on Friday, though the conflict in the Middle East is adding volatility to global prices and raising freight costs.
Argentina is benefiting from record wheat and corn production and its best sunflower harvest of the century, the exchange said in a report, with exports providing an outlet for abundant supplies.
But the wider global backdrop is becoming more unstable, as war-related disruptions to shipping routes and heavy speculative trading in futures markets cause sharper swings in grain prices.
Sunflower has emerged as one of the biggest success stories of the 2025/26 season, the exchange said, with sunflower oil exports posting their strongest start to a marketing year since 2005 and shipments of raw sunflower seed hitting unprecedented levels in the first quarter.
Corn is also off to a quick start. With the harvest advancing and heavy arrivals at the Rosario export hub, the first month of Argentina's new corn export season is expected to break records, topping 4 million metric tons, the report said.
Argentina's corn remains competitively priced on world markets despite rising shipping costs, helping exporters maintain strong sales. That edge could weaken later in the year, however, when Brazil's second-season corn crop begins reaching global buyers.
Still, the strong harvests and robust export demand at home will face headwinds from the conflict in the Middle East, including disruption around the Strait of Hormuz, the report said.
(Reuters)