Forecasts for Argentina’s soy, corn crops up due to more rainfall

Argentina’s current soybean and corn harvests were upwardly revised on Thursday, as expected yields from both key grains crops benefited from more rainfall.

The Buenos Aires Grains Exchange now sees soybeans from the 2023/24 harvesting season at 52.5 million metric tons, or up about 1% compared to the previous forecast. The exchange sees corn output from the same season at 56.5 million tons, up nearly 3% from the previous forecast.

The exchange pointed to improved soil moisture boosting both crops.

The South American agricultural powerhouse is a top global supplier of processed soybeans, and a major corn and wheat exporter.

The exchange also nudged up its corn planting estimate to 7.2 million hectares (17.8 million acres), compared toa prior forecast of7.1 million hectares.

The exchange stressed that if expected rains do not materialize, the forecast for soybeans could change.

The Rosario grains exchange said separately on Thursday that rains in the country’s core farmland have helped “turn the page” after three years of debilitating drought.

Soybean farmers in the area are ready for a “rematch,” the Rosario exchange added, with this cycle’s harvest for the country’s top cash crop set to top last year’s by more than five times. It cautioned some areas still need more rain, and soon, to maintain projections as high temperatures are expected.

Argentina’s latest wheat harvest, meanwhile, ended with a 15.1 million ton yield, in line with the Buenos Aires exchange forecast and landing 25% higher than last year’s drought-hit cycle. The wheat yield, however, came in some22% below the five-year average.

The new government of libertarian President Javier Milei hopes to generate revenue from the sector by hiking export taxes on key grains, as Argentina grapples with an ailing economy marked bysky-high inflation.

Tags: harvest, corn, planting, estimate, soybeans, rain, yields, output, Argentina