Reuters – Argentina’s 2022-23 wheat-planting area estimate could be cut a third time if drought persists in large parts of producing areas, the Buenos Aires Grains Exchange (BdeC) said June 16, adding chances were slim for strong rainfall.
Argentina is a top global exporter of wheat and the No. 1 soyoil and meal exporter. Its role as a grains supplier has grown during hostilities between Russia and Ukraine, normally the largest shippers of wheat in the world.
However, tough conditions for planting and high fertilizer prices are denting the South American country’s ability to ramp up wheat production.
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Argentina’s planted wheat area is currently seen at 6.4 million hectares by the exchange, cut from its initial forecast of 6.6 million hectares about a month ago.
“If the drought scenario is not reversed in the short term, it could result in a new adjustment of our area projection,” the exchange said in its weekly grain report, adding that the time frame for sowing in the country’s west and centre-north agricultural areas is near its end.
Lack of rain hinders or prevents sowing of the cereal. Until June 15, Argentine producers had planted 47.4 per cent of the estimated area, 10 percentage points behind the rate registered a year ago, the exchange said.
In its monthly weather report, BdeC said the 2022-23 season, from next week through September, is heading towards a “severe, dry and cold winter.”
Regarding 2021-22 soybeans, the exchange said farmers have already harvested 99 per cent of the planted area and final production of the crop would be of 43.3 million tonnes.
The 2021-22 corn harvest is 37 per cent complete with production forecast steady at 49 million tonnes.
