Argentina predicts second worst national harvest in 15 years for soybeans and corn due to drought

The soybean harvest in Argentina could drop to 34.5 million tons in the 2022-2023 campaign due to the impact of drought, registering its lowest volume in the last 15 years, the Rosario Stock Exchange (BCR) estimated yesterday, Wednesday.

The stock exchange entity reduced by 3.5 million tons the soybean production forecast for the current campaign, 7 percent less than the estimate made at the beginning of this year.

“The second oilseed estimate continues to show the impact of the worst drought in the last 60 years in Argentina and the lack of a strong weather response to end the losses (…)”

“Thus, it will be the second worst national harvest in the last 15 years,” the BCR said.

It also predicted that “there will be 18 percent less harvest than a year ago, a harvest also affected by the lack of water”.

Regarding corn, the entity cut its forecast by 7.5 million tons, estimating a total harvest of 42.5 million tons, the worst in the last five years.

“After a momentary relief, Argentina suffers a very delicate scenario. In corn, production is already estimated to fall by 15 percent with respect to the 50 million tons expected under a normal weather scenario,” the Stock Exchange statement said.

For the previous season, the BCRA indicated that almost 17 percent less corn crop is expected than a year ago.

The Argentine government has acknowledged the seriousness of the drought that already affects more than 55 percent of Argentina’s territory.

Considered the worst in the last century, the drought affects the northern areas of Buenos Aires, the provinces of Santa Fe, Entre Ríos, and Córdoba (center), and Chaco, Formosa, and Santiago del Estero in the north of the country.