Argentina seeks to reenter Chinese wheat market after three decades

ARGENTINA – Argentina’s wheat exporters are moving to secure their first significant sales to China in over three decades, a development that could reshape the nation’s agricultural export landscape.

Gustavo Idigoras, president of CIARA-CEC, Argentina’s leading crop-exporting group, confirms that discussions with Chinese buyers are intensifying, noting that China is signalling interest in Argentine wheat after authorising imports earlier this year.

“China also recently authorised purchases of Argentine corn, though no cargoes have yet sailed,” he notes.

This pivot comes as Argentina’s wheat sector celebrates a promising harvest season. Growers in Buenos Aires Province, the heart of the nation’s wheat production, are reporting improved yields following sporadic rains that mitigated drought concerns.

A recent tour by the Bahía Blanca Grain Exchange estimates the region will produce 3.9 million metric tons, an 18% increase from the previous season.

According to the U.S. Department of Agriculture, the national wheat harvest is projected at 17.5 million tons, up from 15.9 million tons last year.

The rebound is attributed to the dissipation of a La Niña climate system that had threatened crops earlier in the year.

Gabriel Abregos, an analyst at the Bahia Blanca Grain Exchange, highlights the impact of timely rains.

“Sporadic rains over the last few months fell just in time to keep plants in good condition, spurring improved yields,” he says.

This production boost aligns with hopes for expanded export opportunities. The incoming U.S. administration, led by President-elect Donald Trump, is raising concerns about tariff threats, which could disrupt global trade flows.

A potential trade conflict between the U.S. and China may benefit South American exporters, including Argentina.

“Brazil took advantage of Trump’s first trade war, boosting its endeavour to be an agricultural force,” says Idigoras.

“We need to know what a second trade war would look like, long, short, multi-destination, multi-product, to see who could seize the opportunity this time around.”

Argentine President Javier Milei has pledged to reduce export tariffs, which currently range from 12% to 33%, but these levies remain crucial for government revenue.

Idigoras said exporters are lobbying for reductions to enhance global competitiveness, but the government’s fiscal needs may complicate these efforts.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.