Argentina Grains Exchange Lowers Corn and Soybean Production Forecasts Due to Drought

The Rosario grains exchange in Argentina has reduced its 2024/25 corn forecast to 48 million tons due to drought, down from 50-51 million. The soybean production forecast was also lowered, affected by prolonged lack of rainfall. Minimal future precipitation is anticipated, suggesting ongoing agricultural challenges.

On January 15, 2024, Argentina’s Rosario grains exchange announced a reduction in its corn harvest forecast for 2024/25 due to ongoing drought conditions. The new estimate for the corn yield has been lowered to 48 million metric tons, down from an earlier range of 50 to 51 million tons. The exchange identified extreme temperatures, low humidity, and high solar radiation as critical factors impacting this adjustment, stating that these conditions have adversely affected early corn production during a pivotal time.

Argentina, recognized as the third-largest supplier of corn globally, also leads in the export of soybean meal and oil. The grains exchange has revised its outlook for soybean production for 2024/25, indicating that it will fall short of the previous estimate of 53 million to 53.5 million tons, although a specific figure has not been disclosed. The sustained lack of rainfall affecting the agricultural sector is anticipated to diminish soybean yields, leading the exchange to dismiss former high productivity expectations that were previously considered feasible.

Although the exchange forecasts some precipitation in the near future, it cautions that any rainfall is expected to be minimal. This outlook suggests ongoing challenges for Argentina’s crucial agricultural sector, which has been supported by favorable conditions in the past.

The Rosario grains exchange has revised its forecasts for both corn and soybean production in Argentina for the 2024/25 season due to drought conditions. The significant drop in corn estimates from 50-51 million tons to 48 million tons and the downward adjustment in soybean expectations reflect the adverse effects of extreme weather. Although some rain is expected, its insufficient nature highlights the continuing challenges faced by the agricultural sector in Argentina.

Original Source: www.agriculture.com