Heavy ‘downpour’ boosts prospects for Argentine corn, stabilizes wheat

Significant rainfall last weekend over Argentina’s core farmland has improved the prospects for the current corn crop, while also stanching the bleeding for planted wheat after an intense dry spell, the Buenos Aires Grains Exchange (BdeC) said on Thursday.

The South American country’s massive farm sector is a top global grains producer, with soybeans, corn and wheat the sector’s main drivers.

Last weekend’s 45.5 millimeters (1.8 inches) of rain brought much-needed relief to farmers, who had not seen significant precipitation in months, according to the Rosario stock exchange (BCR).

In its weekly grains report, BdeC noted the rainfall helped fields that in recent days also suffered freezing temperatures, with more than 76% of the planted area now categorized as normal or excellent versus 60% previously.

BdeC estimates that 22% of some 7.3 million hectares expected to be planted with corn have been sown for the 2023/2014 season.

Nearly 7% of the 5.9 million hectare 2023/2024 wheat crop has already been harvested, according to Buenos Aires stock exchange data.

Following the recent rains, 54% of planted wheat areas now feature optimal or sufficient moisture, up by 8 percentage points over the past week, according to the Buenos Aires stock exchange.

The exchange forecasts output from the current wheat crop at 16.2 million metric tons.

The latest rains will also help launch the sowing of Argentina’s main cash crop soybeans, which the BCR said in a separate report on Thursday should yield 50 million tons from around 17.4 million planted hectares.

BCR noted the recent “downpour” is expected to help kick off soybean sowing next week in northern Buenos Aires province, southern Santa Fe and southeast Cordoba.

Argentina is one of the world’s biggest exporters of processed soybeans, which contribute much-needed U.S. dollars for central bank coffers.

Tags: corn, wheat, crop condition, Argentina