Argentina projects a dip in wheat crop production in central producing region

ARGENTINA – Wheat production could fall 25% in Argentina’s central producing region during the 2022/23 season, due to dry weather and creeping costs, according to a report released in April by the Rosario Grains Exchange.

The report forecast that Argentina’s wheat planting area for the 2022/23 season is expected to be around 6.5 million hectares, down from 6.7 million hectares in the previous season.

Wheat output in the central farming region would decline by 2 million tons, from 7.8 million tons produced in 2021/22.

A 20% reduction in fertilizer use due to high input costs, a relative improvement in barley harvest margins, domestic policies affecting wheat planting as well as weather related doubts from local and international markets, are some of the underlying factors explaining the reduction in planting area ahead of the new season.

The exchange said that “Conditions are likely to be favorable in the growing areas closest to the Atlantic coast and river areas, with moderate to abundant rainfall and good availability of cold,” referring to the eastern part of Buenos Aires province.

The Buenos Aires exchange warned, however, that producing regions far from the Atlantic and the Parana River basin could see drought, especially the southwest region of Buenos Aires.

The grains exchange also noted that an extended La Niña weather pattern is expected through the winter and could extend into next spring, which would reduce soil moisture as temperatures rise.

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A stabilization fund was created by the Argentinian government in March with the aim of controlling wheat prices amid rising inflation.

In 2021/22 Argentina produced 21.8 million tons of wheat, according to a report by the Buenos Aires grain exchange, making it one of the world’s largest wheat producers and exporters.

Argentina announced in march that they were increasing their annual wheat export quota for the 2022-2023 season by 8 million tons to a total of 10 million tons to take advantage of high international prices.

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Argentina and other top wheat producers are expected to play a crucial role in the coming months to help supplement the tightened global supply as a result of the war between Russia and Ukraine which together had accounted for 30% of international shipments.

Argentina and other top wheat producers are expected to play a crucial role in the coming months to help supplement the tightened global supply as a result of the war between Russia and Ukraine which together had accounted for 30% of international shipments.

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