43 - 04/98 - Possible Problems with Current Grain Loadings - Ex Argentina
We understand there is over-production of grain in Argentina at the present time. This year's harvest is estimated at 60m tons, whereas there is only storage and drying facilities for 50m tons. We are informed that producers are being advised to store crops rather than sell at low prices.
Because of the over production, storage facilities are stretched and it is believed that some crops are having to be stored in the open. Unfortunately the weather is unusual in that there is a lot of rain and high ambient humidity with flooding in certain rural areas (caused by El Nino ).
There is serious concern that grain presently being exported could have a high moisture content which could lead to excessive condensation and/or grain diseases on passage.
We strongly recommend owners due to load grain in Argentina within the coming weeks carefully to check the condition of the grain prior to loading and, if in any doubt about the condition, contact the local correspondent.
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