October 17, 2022

 

Argentina wheat crop projections slashed again due to drought and low temperatures

A senior analyst at the Rosario grains exchange said Argentina's wheat harvest this year is expected to reach 16 million tonnes, a 500,000-tonne cut compared to previous projections as the crop is affected by drought and low temperatures, Reuters reported.

 

Argentina is a significant exporter of wheat, and as a result of a global supply shortage brought on by Russia's invasion of Ukraine, Argentina's importance on international markets has increased. Both nations are significant wheat producers.

 

Cristian Russo, a Rosario exchange analyst, said as a result of months with little rainfall and additional harm from a recent late season freeze, the most recent wheat crop forecast for the 2022–2023 harvesting season would be Argentina's lowest in seven years.

 

Argentina's wheat crop last year was a record-breaking 23 million tonnes.

 

Argentina ranks third in the world for corn exports and first for processed soy oil and meal. For the cash-strapped government fighting to control surging inflation, which is expected to reach 100% by the end of this year, its exports of grains are the main source of income.

 

Government representatives will meet with wheat exporters and millers later on Thursday to talk about concerns about the wheat crop and potential shortages for the domestic market.

 

According to official data, the nation's farmers have already formally declared 8.85 million tonnes of wheat will be exported in 2022–2023. The current season's wheat harvest export limit is 10 million tonnes.

 

Government statistics showed 7.6 million tonnes of wheat from the 2021/22 harvest were consumed domestically.

 

The bulk of the 2022–2023 crop is harvested from November through January, and the short-term weather predictions are not promising before those crucial months.

 

A Buenos Aires grains exchange report said no appreciable rainfall is anticipated next week in the main wheat-producing regions of the country as well as nearby farmland in Uruguay.

 

The exchange's report said rainfall of less than 10 mm (0.39 inch) is predicted for wheat plantings in Uruguay and the majority of the Argentine Pampas region. It also stated that there would probably be stronger winds and warmer-than-average temperatures.

 

-      Reuters