Argentine wheat crop needs rain to avoid damage, says exchange
BUENOS AIRES, Aug 24 (Reuters) – Argentina’s current wheat crop needs precipitation in the coming days across key farmland in order to stave off a hit to yields, according to a weekly report from the Buenos Aires Grains Exchange published on Thursday.
Wheat and other grains, especially soybeans and corn, are key commodities for Argentina, a major global supplier. Grains exports are also crucial sources of foreign currency for the South American country’s cash-strapped central bank.
In its report, the grains exchange noted that central and northern farmland have received very little rainfall in recent months, which could hamper the wheat crop’s development.
The 2023/2024 wheat season, which kicked off last May and runs through January, covers 6 million hectares, according to the exchange.
Wheat farmland in the center of the country is especially at risk if plants have not reached reproductive stages, or if wilted or otherwise stunted plants are observed, the report’s authors explained.
“If short term rains do not come, that could begin to limit (the wheat harvest’s) potential.”
Only light rainfall is forecast in the next few days over the key areas, or less than 10 millimeters, according to a Wednesday weather report from the exchange.
Higher-than-expected rainfall driven by the weather phenomenon known as El Nino is expected to arrive from October, experts from the exchange estimated last week. If the forecast proves correct, the precipitation would arrive in time for the planting of soy beans, Argentina’s top cash crop, but late for early corn plantings in September.
Farmers harvesting 2022/2023 corn will likely finish in the next few days, the exchange added, with output estimated at 34 million metric tons, hurt by the impact of severe drought conditions.
The 2022/2023 corn crop runs from September to the following August, though plantings can take place as late as December.
The upcoming 2023/2024 corn cycle is seen covering 7.3 million hectares, or up about 3% compared to the area planted during the previous harvest.
(Reporting by Maximilian Heath; Editing by Josie Kao)
((david.aliregarcia@thomsonreuters.com; +52 55 5282 7151; Reuters Messaging: david.aliregarcia.thomsonreuters.com@reuters.net))
