Argentinian grain rallies amid unfavorable crop conditions and global and social political climate.

ARGENTINA – Argentina’s grains yield relatively good harvest despite unfavorable weather conditions and the increased costs of input materials, according to a report from the US Department of Agriculture’s Foreign Agricultural Service (FAS).

Corn Production in MY 2022/2023 is forecast at 52 million tons, a marginal increase from MY 2021/22 estimates during which there were significant cuts in harvested area and yield due to a very dry summer.

Similarly, production for peanuts is projected at 1.25 MMT and 1.2 MMT respectively, the MY 2021/22 reduction due to early frosts.

Corn exports in MY 2022/2023 are forecast at 38 million tons and corn for domestic consumption for MY 2022/2023 is forecast at 14.0 million tons.

Peanut Exports are estimated at 937,000 MT for MY 2021/22, and are projected to fall to 900,000 MT in MY 2022/23.

Post projects the planted acreage of sunflower seed to jump to 2 million HA, up 17.6% MY 2021/22 estimated acreage.

Barley acreage upticks in wake of strong local and foreign demand

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Production in MY 2022/2023 is forecast at a record 5.3 million tons and 6 percent higher than Post’s estimate for MY 2021/2022 as prices of malting and feed barley are expected to maintain on the high side owing to strong local and foreign demand.

Barley domestic consumption in MY 2022/2023 is projected at 1.6 million tons and exports at 3.7 million tons with China as the main destination for feed barley.

Rice and soybean production to remain unchanged

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Production and harvested acreage for rice and soybean are projected to remain practically unchanged from the previous marketing year.

 Rice production in MY 2022/2023 is forecast at 780,000 milled basis and exports at 340,000 and soybean plant acreage at 17 million hectares.

While exports of whole soybeans are projected at 6.5 MMT for MY 2022/23, up 136 percent from projected MY 2021/22 levels, rice exports are forecast down at 340,000 tons, milled basis.

Brokers indicate that export is quite stressed due to logistics problems and very expensive freight costs.

Domestic soybean meal consumption is forecast up slightly relative to MY 2020/21 similar to domestic rice consumption which is expected to project upwards by 460,000 tons for MY 2022/23.

Wheat and sorghum production decline

Wheat production in Marketing Year (MY) 2022/2023 is forecast by post at 18.6 million tons, 3.3 million tons lower than in the previous year as wheat planting intentions remain uncertain amid expected tight returns on rented land and the current high prices for wheat crop inputs, especially fertilizer.

Wheat exports in MY 2022/2023 are forecast down at 12.6 million tons, as a result of a projected smaller output while domestic consumption of wheat in MY 2022/2023 are projected up at 6.5 million tons.

Production for MY 2022/2023 is forecast at 3 million tons, lower than the previous year and production in MY 2021/2022 is projected at 3.3 million tons, 450,000 tons lower than United states department of agriculture estimates.

This is the effect of the dry summer and a strong attack of yellow sugarcane aphid during the first few months of development

China remains the main exporting destination with exports in MY 2022/2023 forecast at 2 million tons. Domestic consumption for MY 2022/2023 is projected at 1.1 million tons.

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