April 26, 2022

Argentina's wheat production could drop 25% in its central producing region

Argentina's Rosario grains exchange said wheat production could drop 25% in the country's central producing region during the 2022/23 season because of dry weather and increasing input costs, Reuters reported.

In a report, the Rosario grains exchange said in the key farming region, less planting and poorer yields are projected compared to the previous harvest, which pointed to lower fertiliser use owing to increased costs.

According to the report, wheat output in the central agricultural region would fall by 2 million tonnes from 7.8 million tonnes produced in the 2021/2022 cycle, while planting is set to decline 10% and fertiliser use will be 20% lower.

An protracted La Nia weather trend is forecast over the winter and into next spring, which will limit soil moisture as temperatures climb.

Data from Buenos Aires grains exchange showed Argentina produced nearly 22 million tonnes of wheat in the 2021/22 crop. During that season, the exchange also cautioned a decrease in wheat-growing land, where planting is set to commence.

The global commodity market has been affected by Russia's invasion into Ukraine, as both countries are major global wheat suppliers.

-      Reuters