Dry season keeps a lid on Argentina’s winter crop output

Last week concluded with some excellent news for Argentina’s grain exporters, with the government finally publishing the terms of a long-awaited proposal for dredging of the Paraná River. The international tender for a 30-year licence includes a pivotal provision to deepen the navigation channel in the country’s main trade waterway. This will allow exporters to load bigger cargoes at the Rosario export hub, increasing their competitiveness in global markets. While there were some excellent rainfall events across parts of Argentina’s winter cropping area in late October and the first three weeks of this month, it has not been enough to halt a decline in the production outlook following a season where the rainfall events have largely been hand to mouth in many regions. While certainly better than last season, the limited soil moisture reserves have kept a lid on winter crop estimates for much of the year. According to last week’s crop update from the Buenos Aires Grain Exchange, ...