Reuters – Argentina’s central farming region is suffering through high temperatures and little rain, the Buenos Aires grains exchange said ahead of an anticipated cut to its estimates of soybean and corn harvest due to drought.
The agricultural heartland of the South American country has suffered a drought for months. Although early-year rains brought partial relief, recent dry weather in February and March forced the Rosario exchange to sharply cut its 2020-21 soybean harvest estimate to 45 million tonnes.
Argentina is the world’s largest exporter of processed soybean oil and meal, and the third-largest exporter of corn. Harvesting of 2020-21 soybeans and corn, the two main crops in the country, is set to begin in the coming weeks.
“Tropical winds will return, causing very high maximum temperatures in the centre of the agricultural area,” the Buenos Aires exchange said in a weather report. Its current forecast for the soybean and corn harvests is 46 million tonnes each.