Drought in Argentina has had a bigger-than-expected impact on corn and soybean crops

Drought forces both exchanges in Argentina to lower their forecasts for the current harvest.

Dry weather conditions in Argentina are having a negative impact on the development of corn and soybeans in the country. In particular, local farmers report yellowing of corn leaves, which should be green at this time of the season, Reuters reports.

Drought has forced both exchanges in Argentina to lower their forecasts for the current harvest, although local farmers report that the effects of the drought are likely worse and the real potential of the harvest depends on when the rains begin.

Recall that the Buenos Aires Grain Exchange has announced a forecast for the soybean harvest in the country at 49.6 million tons (in the previous season – 50.2 million tons) and corn – 49 (49.5) million tons. According to exchange analyst Eduardo Sierra, precipitation in the short term would help farmers collect 45 million tons of each crop. “But every week in February that passes without rain, farmers lose at least 5 million tons of harvest potential,” he says. Without rain, the soybean and corn harvest will ultimately be around 40 million tons.

A reduction in the 2024/25 harvest of these crops could be a serious problem for Argentina, which relies heavily on exports to bring in much-needed foreign exchange to support the local peso. However, the rain forecast is quite uncertain. Most experts predict rain in the next few weeks, but the extent of its coverage remains unknown.

Tags: corn, soybean, Argentina