Argentina’s 2021-22 wheat harvest seen at record 21.5 mil mt on higher yields

The Buenos Aires Grain Exchange in a report Dec. 23 increased its projection for Argentina’s wheat output in marketing year 2021-22 (December-November) to 21.5 million mt, up 500,000 mt from the previous estimate due to expected higher yields.

Farmers have completed wheat harvest across 78.3% of the total sown area of 6.6 million mt, according to the report.
The average national yield is at 3.28 mt/hectare, the report said.

The wheat harvest in expected to get over in the country by the end of January 2022.

Of the total wheat crop, 81% of the crop was in excellent-to-good condition while another 19% was in fair condition. In MY 2020-21, 38% of the crop was in excellent-to-good condition while 56% was in fair condition.

The US Department of Agriculture has estimated Argentina’s wheat output at 20 million mt in the latest World Agricultural Supply and Demand Estimates report Dec. 9

A likely increase in wheat output estimate from Argentina is significant amid global tightening of supplies.

Amid the likely increase in demand for Argentinian wheat, the government has imposed an export limit on the food grain for MY 2021-22.

Argentina’s agricultural ministry on Dec. 17 capped wheat exports for MY 2021-22 at 12.5 million mt. The USDA has pegged Argentina’s wheat exports in MY 2021-22 at 13.5 million mt.

Argentina has decided to cap wheat exports in a bid to cool off domestic prices of the grain, trade sources said.

The South American country is a key wheat supplier, primarily to neighboring Brazil. However, with global supplies seen drying up from Russia, the US and Canada, consuming countries in the Middle East are also looking at Argentina to meet their requirements.

Russian wheat exports have been restricted due to increasing export taxes and a quota limiting shipments from Russia at 8 million mt between Feb. 15 and June 30.

The harvest in the US and Canada was seen declining due to adverse weather conditions, especially a warmer summer.

Apart from concerns about the produce from the US and Russia, Ukraine also was said to have been considering limiting exports of milling wheat at 4 million mt during January-June.

S&P Global Platts

Tags: Argentina, Buenos Aires Grain Exchange, estimate, wheat, yields, output