News

Argentina grain production seeing more weather impact

Drought in some key growing areas is expected to have an impact on grain production in Argentina again this season.

The USDA’s Foreign Ag Service has lowered its corn production guess for Argentina to 53 million tons, cutting planted area as some farmers switch to soybeans because of better returns, in addition to the dry weather. The USDA’s most recent official guess was 55 million tons and both are still well above the drought damaged 2022/23 total of 34 million tons. Exports for the upcoming marketing year are estimated at 38 million tons, 3 million less than the last supply and demand report.

El Niño conditions expected to fully emerge in the Southern Hemisphere’s spring and summer usually lead to above average rain in parts of Argentina.

Argentina’s wheat crop is projected at 14.5 million tons, 2 million less than the most recent official estimate due to that dry weather and an early October frost. A year ago, production was 12 million tons. Wheat exports for the upcoming marketing year are expected to be 10 million tons, compared to 3.9 million last marketing year.

The FAS says those smaller corn and wheat crops and lower exports potentially open up opportunities for U.S. farmers.

The estimate for sorghum was bumped up to 3.2 million tons from the official estimate of 2.5 million on higher than anticipated planted area as Argentina tries to meet increased demand from China. Argentina’s 2023/24 sorghum exports are seen at 1.3 million tons.

The USDA’s next set of supply and demand estimates is out November 9^th.