February 21, 2022

Argentina farm belt expects light showers, then heavy rains at month end 

The Buenos Aires grains exchange said drought-hit Argentina is set for a week of light rainfall, then heavier rains towards end-February, Reuters reported.

Argentina, the biggest processed soy exporter and second biggest corn exporter, has been badly affected by a drought linked to the La Nina climate pattern. This has resulted in harvest forecasts slashed for both grains in the past few months.

Global grains prices have soared on drought fears in Argentina, Paraguay, and Brazil.

The exchange said rainfall is expected over the next week in farming regions, but only in moderate amounts of 10 to 25mm before heavy rains arrive in the end of February.

Abundant rainfall is expected in that the east of the Pampean Region and most of Mesopotamia at about 25-100mm.

The Buenos Aires exchange slashed its 2021/22 soybean harvest outlook from 44 million tonnes to 42 million tonnes, and corn from 57 million tonnes to 51 million tonnes. Rival Rosario exchange slashed its forecasts further.

Esteban Copati, head of agricultural estimates at the Buenos Aires exchange, said the recovery can be surprising depending on the amount of rain over the coming weeks.

A separate report by the Buenos Aires exchange said crop conditions had declined over the past week, with projected soybean yields set to be below the averages of the past five campaigns. Because of the drought, harvesting had begun earlier, and these were hardest hit by the dryness. Late corn is expected to be better.

-      Reuters