By Nicolás Misculin
BUENOS AIRES, Feb 3 (Reuters) – Argentina’s Buenos Aires grains exchange cut its forecast for the 2021/22 soybean harvest to 42 million tonnes on Thursday, down from 44 million tonnes previously, due to lower yields and a smaller planting area than originally planned.
Argentina is the world’s leading exporter of processed soybean oil and meal and the third largest exporter of unprocessed beans. In December-January it suffered a severe drought with high temperatures that damaged crops.
The rival Rosario grains exchange in January slashed its soy production forecast to 40 million tonnes, and knocked 8 million tonnes of its corn forecast after a long period of drought hit the two crops at key development stages.
“Lack of surface moisture on both ends of the agricultural area held back initial planting plans,” the Buenos Aires exchange said in its crop report.
“What’s more, as a consequence of high temperatures and tight water reserves in core regions during critical periods, the performance potential could record losses of up to 30%.”
In the 2020/21 cycle, Argentina’s soybean production was 43.1 million tonnes, according to the exchange.
The exchange said that corn planting, meanwhile was 99% complete. Argentina is the world’s no. 2 exporter of the grain.
A large planting area for the 2021/22 season, up 7.6% versus the previous campaign, could see a record corn harvest of 57 million tonnes, it said, although lower yields as a result of the drought could lead to a cut of that estimate too.
The Buenos Aires exchange generally waits until planting is fully completed before adjusting its forecasts. In the 2020/21 season, Argentina’s corn production was 52.5 million tonnes.
The South American country is set for a period of rains followed by a new heat wave, the exchange said in an earlier weather report. Lower temperatures and recent rains are helping to “stabilize” crop conditions, it added.
Argentina: crop conditions https://tmsnrt.rs/3ogtXhy
Argentina: crop conditions https://tmsnrt.rs/32VKK1p
(Reporting by Nicolas Misculin; Editing by Adam Jourdan and Aurora Ellis)
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