In Argentina, the worst harvest in 20 years is expected in 2022/23 MR due to drought

For the third year in a row, the climatic phenomenon of La Niña has reduced the amount of precipitation in the main agricultural regions of Argentina. The drought has already lowered wheat crop forecasts and now threatens the future of soybean and corn crops.

Rosario exchange experts believe that in 2022/23, the country will harvest the worst harvest in the last 20 years, as the level of soil moisture is now lower than in the 2008/09 season, when only 31 million tons of soybeans were harvested from 18 million hectares of land. Soybean production is not forecast to exceed 48 million tonnes, but estimates may be adjusted as drought delays planting and renders some fields unusable.

The outlook for corn production is also doubtful. Argentina is the world's largest exporter of soybean oil and meal, and is the third largest exporter of corn. However, the second season of drought is destroying plants and livestock.

According to the forecast of the National Meteorological Service of Argentina, from December 2022 to February 2023, in the main agricultural regions, including the northern province of Buenos Aires and the southern part of Santa Fe, the amount of precipitation will be below the norm, which may lead to a reduction in the area sown.

The forecast for wheat production has already been reduced to 11.8 million tons from the initial 19 million tons, and may be adjusted again, and most of the crop will be of fodder quality, not food grain. We will remind that in 2008/09, Argentina harvested 8.3 million tons of wheat.

Currently, wheat has been threshed on 78.3% of the area, 60.6% of the planned 16.7 million hectares have been sown with soybeans (12.6% less than last year), and 51.8% of the planned 7.3 million hectares with corn ( by 8.4% less than last year).