September 27, 2022
Argentina's recent rainfall too late to reverse effects of drought
The Buenos Aires Grains Exchange (BdeC) said that the recent rains in the country were insufficient to reverse the effects of the drought in Argentina's main breadbasket and that a decline in wheat yields is likely for the major grain-producing nation, Reuters reported.
The projected wheat planting area for the 2022–2023 harvest is 6.1 million hectares, which is less than the 6.6 million hectares estimated at the cycle's start before drought conditions set in. As a result, according to BdeC, wheat yields could decrease by as much as 60% in 2022–2023.
Argentina is a major supplier of wheat to the world, but it has been experiencing a drought for months.
In its weekly report, BdeC noted that more fields that were originally intended for wheat will now be planted with corn or soybeans.
The most recent projection from the BdeC is consistent with one made on Wednesday by the Rosario Grains Exchange (BCR), which also decreased its estimate of wheat production due to drought from 17.7 million tonnes to 16.5 million tonnes.
The BdeC said that as a result of the ongoing dry conditions, farmers had only planted 3% of the estimated 7.5 million hectares they had planned to plant for the 2022–2023 season.
In response to what it called "the worst" drought in decades, the Rosario exchange also reduced its forecast for corn production by 2 million tonnes to 56 million tonnes.