Argentina. Record wheat harvest and grain situation

Favorable weather conditions have resulted in a bumper harvest, but prices remain low and the country’s economy is under pressure.

Argentina is poised for a record wheat harvest of 23 million tonnes, matching the 2021-22 figures, thanks to abundant rainfall that provided good soil moisture. However, wheat prices continue to decline, and hedging has only accounted for 15% of the expected harvest.

The central region of the country (northern Buenos Aires, El Rio, Santa Fe, Cordoba, and others) will account for 66% of national wheat production, with an average yield of 131 bushels per hectare. Approximately 6.7 million tonnes will be processed into flour, most of which will be exported.

Corn production is estimated at 54 million tonnes – the fourth-highest level on record, up 12.5% ​​from the previous season. The sowing area increased by 10% due to improved weather conditions and disease control.

Soybeans: the total sowing area will decrease by 1 million hectares, but the yield will be 49.5 million tonnes – a slight increase compared to last season. Soybean crushing will increase to 43 million tonnes, supported by favorable margins, domestic production, and inventories. Soybean meal and oil exports will increase by 17%, with approximately 90% of the beans going to China.

Tags: wheat, Argentina, prices, soybean