Argentina's government has authorized 2.75 million tons of corn for export from the 2011-12 crop, bringing to 16.45 million tons the amount of corn that can be shipped abroad from that harvest.

In a statement, the Agriculture Ministry said the authorities have authorized 15 million tons of corn exports from the coming 2012-13 harvest.

Argentina regulates corn and wheat exports to keep domestic food prices low. The government only frees up shipments abroad once domestic supplies have been set aside.

Argentina is the world's No. 2 corn exporter.

Global corn prices have soared this year owing to a drought that has scorched fields across the U.S. Farm Belt.

But even with favorable planting conditions and high prices, Argentine farmers are expected to plant less corn due to the high cost of raising the crop and tight budgets after last season's drought cut production.

The Buenos Aires Cereals Exchange expects planting for the 2012-13 corn crop to fall 20% on the year to 3.1 million hectares (7.7 million acres).

Write to Ken Parks at ken.parks@dowjones.com

(END) Dow Jones Newswires

September 05, 2012 08:30 ET (12:30 GMT)