World Grain - April 2007 - 14

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Argentina stops issuing export registrations for wheat
WASHINGTON, D.C., U.S. - In an effort to
control domestic prices, Argentina's government
temporarily stopped issuing export registrations
for wheat and wheat flour on March 8, the U.S.
Wheat Associates (USW) Assistant Regional
Director Miguel Galdos-Tanguis reported. The
government specified no end date for the restriction. A truck driver strike had already complicated Argentine grain shipments by delaying vessel
loading in the major port of Rosario.
Reuters reported on March 8 that the Argentine government estimates its producers harvested 14 million tonnes of wheat this year, a belowaverage crop. Under local law, exporters must
seek permission to sell grain abroad through a
government registry. The Agriculture Secretariat
estimated exporters had obtained permits to sell
8.76 million tonnes of 2006-07 wheat.

Brazil buys a significant portion of Argentina's
wheat. Before this announcement, analysts predicted that Brazil would need to purchase about
1 million tonnes of wheat from other suppliers
this year. Some believe Brazil's external wheat
demand may reach 1.5 million tonnes with the
cut-off of Argentine flour exports.
By mid-March, sales of wheat in the market in
the Brazilian state of Paraná stopped due to the
suspension of wheat exports from Argentina. According to the wheat analyst of AgRural, Benedito de Oliveira, the producers that still have stock
on hand increased prices to levels that flour mills
refused to pay. According to reports, the wheat
farmers wanted at least R$500 (U.S.$238) per
tonne, which is at least 16% higher than prices
when the Argentine government prohibited
wheat exports.

B R A Z I L

A R G E N T I N A

Cargill to buy 10 Canadian grain facilities from Saskatchewan Wheat Pool
WINNIPEG, MANITOBA, CANADA - Cargill Ltd. announced
on March 28 that it has entered into a definitive purchase and sale
agreement with Saskatchewan Wheat Pool Inc. for one export grain
terminal and nine high-throughput elevators in Canada.
The agreement includes the purchase by Cargill of nine combination grain elevator/crop input centers across the three Prairie
Provinces and one export terminal located on the North Shore of
the port of Vancouver, Canada. Also involved is the sale of Cargill's
50% interest in the Vancouver Cascadia Terminal to Saskatchewan
Wheat Pool with some considerations.
Three of the elevators are located in Saskatchewan, in Davidson,
Kindersley and Congress; five are in Alberta, in Vermilion, Camrose, Blackie, Viking and Equity; and one is in Elva, Manitoba,
Canada.

Selection of the high-throughput facilities ensures growers access to local service programs, Cargill said. The agreement is subject to Saskatchewan Wheat Pool's completion of its proposed bid
for Agricore United.
"If this expansion of our business materializes, we look forward
to serving more farmers by providing our professional grain marketing support and crop production consulting services proven in
delivering customer success," said Len Penner, president of Cargill
Ltd. "These assets will complement our existing commitment to
being the partner of choice, delivering distinctive value to fulfill our
goal of helping to nourish the world," he said.
Cargill Ltd. is headquartered in Winnipeg, Canada and operates grain handling and crop input facilities across the Canadian
Prairies.

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World Grain - April 2007

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