Dryness in Argentina seen damaging wheat crop, may not hit output

Scarcity of water in Argentina’s farm belt is seen adversely impacting the wheat cultivation, according to a recent report by Buenos Aires Grains Exchange or BCR.

However, the damage is unlikely to affect the country’s wheat production in marketing year 2021-22 (December-November). The exchange has kept its estimate for Argentina’s wheat output unchanged at 19 million mt.

In MY2020-21, the exchange had pegged Argentina’s wheat output at 17 million mt.

The US Department of Agriculture had also kept its estimates for wheat output in Argentina in MY2020-21 at 20.5 million mt in its World Agricultural Supply and Demand Estimates report on Aug. 12. It had pegged wheat exports at 13.5 million mt.

The South American country is a key wheat supplier, primarily to neighboring Brazil.

The dryness has started to alarm farmers amid forecasts that the La Nina phenomenon may reduce precipitation over the next few months and hit the output.

“The lack of rain aggravates the water deficit situation and causes a decrease in crop growth and delays in plant development, delaying the transition to reproductive stages of later sown fields,” the exchange said.

In the week to Aug. 26, the growing condition good to excellent fell 5.3%. “It is mainly due to the absence of rains in the entire national agricultural area, which continues compromising both growth and development of the cereal,” it added.

The report said that only 32% of wheat are in good to excellent condition while 40% of the crop was in fair condition.

However, the overall condition of the planted crop is better compared with same period last year. During the corresponding period last year, only 18% of the crop was in excellent to good condition and 44% was in fair condition.

The BCR report also said that 52% of the wheat area reported poor or dry soil moisture content.

According to BCR, light showers are expected at the end of this week but that may not be enough to make a difference to most parched wheat areas.

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