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, according to the Rosario grains exchange. This despite the conflict in the Middle East 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.
Sunflowers have emerged as one of the biggest success stories of the 2025/26 season, 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.
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.
EDITOR’S TAKE:
Agricultural markets in the U.S. are strongly influenced by what takes place in other production areas like Argentina. The amount of grain available on world markets helps to determine prices in all major markets. Add to that geopolitical uncertainty the strength of one currency against the other, and transportation advantages or disadvantages, and one can begin to see how the system operates. The fact that Argentina is having record harvests and their currency is weaker compared to the U.S. dollar provides them with a pretty substantial advantage right now. Not good news for U.S. producers heading into the spring planting season. That said, hopefully the unrest in Iran will soon be behind us and U.S. producers will regain some of their natural competitive advantage.
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