Argentina to harvest less soybeans due to drought

Argentina’s grain exchange on Thursday cut its forecast for the country’s 2024/25 soybean crop by 1 million tonnes as the effects of drought become increasingly apparent. The Buenos Aires exchange now expects the harvest to reach 48.6 million tonnes, down from the 49.6 million tonne forecast it issued last week. Argentina is the world’s largest exporter of soybean oil and meal. The exchange said the lower-than-expected output was due to drought, which reduced yields in the northeast of the country. “High temperatures and prolonged water shortages have caused heat and water stress, primarily affecting northeastern Argentina,” the exchange said in its weekly crop report. “These adverse conditions have significantly affected the health of the plantings and the growth of reproductive structures, reducing potential yields by 22%,” the exchange added. About 10% of Argentina’s total soybean area is in the northeast, or about 1.86 million hectares (4.60 million acres). As for the ...