Posted on March, 9, 2023 at 09:28 am
Argentina's Rosario grains exchange sharply cut its forecasts for the country's 2022/23 soybean and corn harvests Wednesday as the country's key agricultural region continues to suffer from a historic drought.
The new estimates put the current cycle's soy crop at 27 million tonnes, below the 34.5 million tonnes seen in last month's forecast.
This season's soy harvest could be the worst on record, dropping below the 27.5 million tonnes harvested in the 2000/2001 season, when the Buenos Aires grains exchange began keeping records.
The exchange forecast this cycle's corn crop at 35 million tonnes, under last month's forecast of 42.5 million tonnes.
Argentina is the world's top exporter of soy oil and flour and the no. 3 exporter of corn, but the current agricultural season has been hit hard by the worst drought in six decades, affecting some areas since May 2022.
Early frosts have further worsened the situation for farmers.
The Rosario exchanged hinted in its report that forecasts could continue to slide this season.
"There are no weather conditions on the horizon which allow us to offer an estimated minimum for the harvest," it said.
Earlier Wednesday, the U.S. Agriculture Department also cut its outlook for the soybean harvest by nearly 20%.
In August, the Rosario grains exchange had estimated the soy and corn crops this season to reach 47 million and 55 million tonnes respectively.
Source: Nasdaq