The Buenos Aires Grain Exchange has cut its production estimates for Argentina’s 2024/25 soybean and corn crops. The reduction comes as a result of hot and dry weather affecting cultivation areas across the country.
This information was released by the exchange in its weekly report on Thursday, January 23. Soybean production forecasts saw a significant decrease of 1 million tons. The new estimate now stands at 49.6 million tons.
The exchange attributes this decline to persistent lack of moisture and high temperatures. These conditions have particularly impacted the potential yield of first-crop soybeans in the South Core and central-eastern Entre Ríos regions.
The adverse weather has also affected second-crop soybeans in the South Core and northern La Pampa-Western Buenos Aires areas. Despite these challenges, soybean planting has progressed slightly.
It now covers 99.2% of the estimated 18.4 million hectares, a 1 percentage point increase from the previous week. However, the portion of the soybean crop in normal to excellent condition has fallen.
It now stands at 72%, down from 79% in the previous week. This decline further underscores the impact of the unfavorable weather conditions on crop health. Corn production estimates have also been reduced by 1 million tons.
Argentina’s Drought Impact
The new forecast is set at 49 million tons. The exchange cites the lack of rainfall and high temperatures as the primary factors behind this reduction. These conditions have been prevalent since late December and throughout January.
The drought has particularly affected corn crops planted in October and early November. These plantings were in their critical growth period during the peak of the dry spell.
Early corn, sown in September, managed to escape the driest period relatively unscathed. Corn planting has reached 98.3% of the projected 6.6 million hectares. This represents a 3.2 percentage point increase from the previous week.
However, the portion of the corn crop in normal to excellent condition has decreased to 80%, down from 86% in the previous week. These reductions in production estimates highlight the significant impact of weather conditions on Argentina‘s agricultural sector.
The situation underscores the challenges faced by farmers and the potential implications for global grain markets. As Argentina is a major exporter of soybeans and corn, these developments may influence international commodity prices and trade dynamics in the coming months.
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