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334720

Argentine gov't set to meet wheat sector amid concerns over crop

By Eliana Raszewski and Maximilian Heath

BUENOS AIRES, Oct 12 (Reuters) - Argentina's government is set to meet with wheat millers and exporters this week amid concerns over the size of this year's crop due to a severe and ongoing drought, a government official and an industry source said on Wednesday.

Domestic millers are worried about a lack of wheat after sharp cuts to production forecasts. A spokesperson for the agriculture secretariat, responding to questions from Reuters, said that there would be a meeting with the sector on Thursday.

"There we will look at the issues they raise. Nothing is defined yet," the spokesperson said when asked about the meeting and if there could be any potential additional export restrictions put in place to protect domestic supply.

A spokesperson for Argentina's economy ministry, which sits above the agricultural secretariat, when asked about potential tighter caps on wheat exports said: "No. It's not like that."

A source from the wheat milling industry told Reuters he had been summoned by the agricultural secretariat for a meeting tomorrow but gave no further details.

Argentina, a major wheat exporter, has seen its 2022/23 wheat harvest forecast slashed by the major Rosario grains exchange to 16.5 million tonnes, which would be the lowest in seven years and far below a bumper 23 million tonnes in 2021/22.

The country's producers have already formally declared overseas sales of 2022/23 wheat of 8.85 million tonnes, official data show. There is an existing export cap of 10 million tonnes for the season's wheat harvest. (Reporting by Eliana Raszewski and Maximilian Heath; writing by Adam Jourdan; editing by Richard Pullin)

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