Argentina’s wheat production in MY2021/22 to hit record levels buoyed by excellent weather

ARGENTINA – Wheat production in marketing year (MY) 2021/2022 is estimated at a record 21.8 million tons, according to a Global Agricultural Information Network report from the Foreign Agricultural Service of the US Department of Agriculture (USDA). 

A combination of a marginally higher harvested area, at 6.6 million hectares, and better-than-expected yields have resulted in a record high wheat crop, USDA said.  

High productivity in MY 2021/2022 has been attributed to heavier than normal use of fertilizer, excellent weather at planting and throughout the growth cycle, and the steady adoption of higher-yielding wheat varieties. 

With more wheat coming to the market, USDA projects that Argentina will have a bigger exportable surplus, which is estimated at estimates at 15.2 MMT.  

Barley production is also expected to increase in MY 2021/2022 to 5.05 million tons mainly due to good weather during most of the productive cycle, increased expenditures on inputs (especially fertilizers), and use of higher-yielding varieties.  

Forecasts for other crops including corn, sorghum, and rice are however not as promising. 

Corn production in MY 2021- 2022 is forecast at 51 million tons, 3 million lower than the official USDA number due to dry conditions. 

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Sorghum production is also reduced because of drought, but exports are forecast up at 2.6 million tons, 300,000 tons higher than the official USDA number. 

Rice production is also expected to decline as a harsh, dry summer, has led to more than 10,000 hectares being abandoned throughout the country. 

Despite harsh weather, Rice exports in MY 2021/2022 are forecast at 390,000 tons, 40,000 tons higher than the official USDA number.  

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Brokers are quite confident they will be able to ship such volume due to the need of the local sector to cover costs and finance the next planting season.  

Chile, Spain, Cuba, Iraq and Brazil are expected to be the leading destinations. 

Turkey zeroes out import tariffs to boost grain imports 

Meanwhile in Turkey, the government is doubling down on efforts to rein in inflation, which was made worse in recent months by the steep depreciation of the Turkish Lira against the US dollar and drought-related grain production losses in MY 2021/22. 

In response to the situation, the government has zeroed out import tariffs for certain imported grains to boost imports. 

Additionally, the Turkish Grain Board (TMO) has purchased about 5.75 million metric tons (MMT) of imported grain – wheat, barley, and corn – since June 2021 to stabilize local prices. 

Local production of wheat production forecast at 16.25 million metric tons (MMT) in MY 2021/22, a 2.0MMT decline mainly due to severe drought conditions across much of the country during the growing season. 

As the weather worsens, other grains from Barley to corn and rice are also expected to plummet by huge margins, 3.6 MMT for barley, 600,000 MT for corn, and 807,000 metric tons for rice.  

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