Analysts once again cut forecasts for soybean and corn harvests in drought-stricken Argentina

Published 2023년 3월 17일

Tridge summary

Argument:
This article highlights the impact of weather conditions on the crop yields of important agricultural regions, including Argentina, Brazil, the US, France, Italy, and the Black Sea region. It discusses the ongoing drought in Argentina, which is expected to reduce the soybean harvest to its lowest level in 25 years, with over 70% of soybean processing facilities facing a load crisis. In contrast, Brazil's second crop corn crops are benefiting from high temperatures and ample rainfall. The US Plains have seen improving moisture reserves in wheat crops, though dryness persists in the southwestern plains. Western Europe, including France and Italy, has experienced improved soil moisture levels, allowing winter crops to emerge from dormancy and plan the planting of spring crops. The Black Sea region experienced a favorable winter, with winter wheat in good condition and expected drier weather in the future.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Traders are keeping a close eye on the weather in Argentina, where drought continues to dampen soybean and corn crop potential. A decrease in temperature is forecast for the next week, but the precipitation deficit will remain. In Argentina this week, isolated showers dropped temperatures from 30°C to 25°C, but they came too late to significantly affect late-stage corn and soybean crops. Precipitation may increase in the central regions next week, but the heat that prevailed in early March will also return. The combination of heat and drought worsens the condition of both crops. According to the forecast of the Rosario Grain Exchange, in FY2022/23 the soybean harvest in the country, which is the world's largest exporter of soybean meal and oil, will amount to only 27 million tons, which will be the lowest level in the last 25 years. At the same time, the Buenos Aires Grain Exchange (BAGE) lowered its forecast for soybean production in Argentina to 25 million tons, although a week ...

Source: Graintrade