Argentina wheat output expected to recover

Improved weather forecasts are expected to lead to recoveries in grain production in Argentina in the 2023-24 marketing year, but continued dry conditions are projected to limit the planting of wheat, according to a Global Agricultural Information Network report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

The FAS said wheat production is forecast to jump 41% to 17 million tonnes, up from 12 million in 2022-23, when a severe drought devastated the country’s grain and oilseed crops. But with lingering recent dryness, the FAS reduced its production estimate by 500,000 tonnes from its previous forecast. Exports are anticipated to increase from 4.6 million last year to 12 million in 2023-24.

“Because of a continued dry environment in many parts of the country, the planted area will be approximately 1 million hectares lower than initially projected,” the FAS said.

It noted that wheat planting is estimated to be more than 80% complete.

“While conditions vary, in general farmers are investing less money in inputs thanks to poor weather at planting, expected lower returns due to lower prices, and farmers’ weaker financial conditions after a very bad 2022-23,” the report said. “However, wetter conditions from July onwards could help offset yield losses linked to the use of fewer inputs.”

Corn production is expected to rise slightly in 2023-24 to 55 million tonnes, while exports are projected to soar to 40 million tonnes, up from 21 million the previous year, the report said.

Tags: forecasts, Argentina, dry conditions, corn, grain, planting, weather, estimate, Production, wheat, drought