2025/26 season becomes historic for Argentina’s grain sector
Argentina achieved a record wheat harvest in MY 2025/26, boosting exports and reopening trade with China after nearly 30 years. Strong yields lifted output, though lower protein impacted quality. Meanwhile, robust corn, soybean, and sunflower production highlights Argentina’s growing strength in global grain and oilseed markets.
In the MY 2025/26, Argentina achieved unprecedented results in its grain sector, harvesting a record wheat crop and resuming exports to China for the first time in nearly 30 years. In December 2025, three cargoes totaling 160,000 tons were shipped, marking a significant step in expanding export destinations.
The expansion of exports comes alongside reduced export taxes introduced by the government of Javier Milei. Duties on wheat and barley were cut from 9.5% to 7.5%, aiming to improve the competitiveness of Argentine agricultural products and boost foreign currency inflows.
According to the Rosario Grain Exchange, wheat production in 2025/26 is expected to reach 27.1 million tons, surpassing the previous record by 20%. The increase is driven by exceptionally high yields, reaching 6–7 tons per hectare in some areas, supported by favorable weather and advanced farming technologies.
Record yields were largely attributed to abundant winter rainfall and the widespread adoption of modern agricultural practices, including improved seed genetics. This combination allowed producers to fully realize the crop’s potential across most growing regions.
However, the high yields came with a decline in grain quality. Protein content in some regions dropped to around 9.5%, below the levels seen in previous years, prompting importers to blend Argentine wheat with higher-quality supplies from other origins.
Total wheat exports for the 2025/26 season are estimated at 17.5 million tons, including flour in grain equivalent. Brazil remains the main buyer, although imports may decline due to quality concerns.
Domestic wheat consumption is projected at 7.7 million tons, with around 6.9 million tons used for milling. Argentina has nearly 160 flour mills, with total capacity significantly exceeding current production levels.
Corn production is forecast at 58 million tons, with exports expected to reach 40 million tons. Favorable growing conditions have supported crop development, although strong competition from Brazil and the United States may challenge export performance.
In the oilseed sector, soybean production is estimated at 47.5 million tons, while crushing volumes are expected to remain high at around 43 million tons. Strong demand for soybean meal and oil continues to support processing margins despite tight supplies.
Meanwhile, sunflower production is projected to reach near-record levels of 5.3 million tons, with crushing at 5 million tons. Expanding processing capacity and strong export demand underline Argentina’s strengthening position in the global oilseed market.
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Source : Ukr Agro Consult
