March 3, 2022

Argentina farm belt shifts from drought fears to too much water

Forecasters are concerned that heavy rains in Argentina's farm belt could affect soy and corn harvests, Reuters reported.

The rain, which comes after months of dry weather that have badly affected projected crop harvests, is an important shift for Argentina, the biggest exporter of processed soy in the world and number two exporter for corn.

Esteban Copati, head analyst at the Buenos Aires grains exchange, said the recent rains allow the exchange to maintain its current outlook but will not result in a rebound in harvest forecasts.

The Buenos Aires grains exchange slashed its soy and corn outlook sharply in February because of the drought to 51 million tonnes for corn and 42 million tonnes for soy.

German Heinzenknecht, a local meteorologist at the Applied Climatology Consultancy, said the rainfall in Argentina's central farm belt should now easily reach the March average of 120-130 mm, and could become a concern if it affects the harvest that has started early for corn and will start in late March for soy.

He said farmers do not want to have excess water not allowing them to harvest, as farmers will want the second fortnight of March to have a little more sun.

-      Reuters