Source: Ukragroconsult (Ukraine)
On Thursday, Argentina’s grain exchange revised its projection for the 2024/2025 soybean harvest downward by 1 million tons as the impacts of drought become increasingly apparent.
The Buenos Aires market now anticipates that the soybean harvest will total 48.6 million tons, a decrease from the previous estimate of 49.6 million tons issued the week before.
As the leading global exporter of soybean oil and meal, Argentina’s agricultural output is crucial.
The exchange attributed the disappointing yield to prolonged drought conditions that have affected crop production in the country’s northeast region.
In its weekly report on crops, the exchange stated, “Prolonged water shortages and elevated temperatures triggered stress due to both heat and lack of water, predominantly impacting northeastern Argentina.”
The report further noted, “These adverse circumstances had a significant negative impact on both the health of the plants and their reproductive development, leading to a 22% reduction in potential yields.”
The northeast region represents roughly 10% of Argentina’s total soybean cultivation area, equating to about 1.86 million hectares (4.60 million acres).
Regarding the corn crop for 2024/25, the exchange pointed out that the drought, which has also impacted northwest Argentina and the northern section of Cordoba province, “has resulted in a 40% decline in anticipated yields relative to earlier projections.”
Notably, a recent technical revision adjusted this season’s corn acreage upwards by 7.6% to 7.1 million hectares, allowing the exchange to keep its forecast for the grain crop at 49 million tons.
Argentina ranks as the third largest corn exporter worldwide.