Drought forces Argentina to lower wheat sowing and yield expectations

Argentina’s “La Nación” website reported on July 14 that the Rosario Grain Exchange said in its new Monthly Agricultural Assessment Report that, due to the current dry weather, Argentina’s 2022/23 wheat sowing area is expected to be reduced from 6.2 million hectares to 5.9 million hectares, a decrease of 1 million hectares compared to 2021/22. Production is expected to be reduced from 18.5 million tons to 17.7 million tons, down 3.4 million tons from the previous year and down 19.9% year-on-year. The report said that the wheat sowing window in central Argentina will end around July 20, and sowing in the south will continue until early August, but there is still no sufficient precipitation to alleviate the drought in the expected time.

On the other hand, the national corn harvest has progressed to 85% of the planted area. The provinces of Chaco and Santiago del Estero are expected to see an increase in production, while the national area sown with commercial corn was revised upward to 7.42 million hectares, bringing the total area planted with corn to a record 8.65 million hectares, an increase of 17% year-on-year. The Rosario Grain Exchange expects total corn production in 2022/23 to reach 51 million tons in A, affected by drought, with current average yields of only 6,830 kg/ha, well below the 2021/22 level of 8,190 kg/ha.

Source: Economic and Commercial Section of the Embassy in the Argentine Republic

Post time: Aug-04-2022