Morocco’s Corn Imports Drop As Drought Grips Argentina

Morocco’s annual corn imports from Argentina are set to drop in 2023 as yield reaches a three-year low.

According to data from the United States Department of Agriculture (USDA), Morocco’s corn imports from Argentina are set to reach 2.3 billion tonnes in 2023, down from 2.5 billion tonnes a year earlier.

Argentina’s overall corn exports are set to drop by 4 billion tonnes, going from 33 billion tonnes in 2022 to 29 billion tonnes in 2023. This year, the country is facing the worst drought in over 60 years.

The South American country is the world’s top exporter of processed soy and ranked third for corn. However, this year, the country continued to cut soybean and corn harvest forecasts.

“We are facing an unprecedented climatic event,” head of economic research at the Argentina Rosario exchange, Julio Calzada.

Calzada added that farmers could be facing a cumulative loss of $14 billion and a reduced production that could reach 50 million tonnes worth of soy, corn, and wheat.

“It’s unprecedented that the three crops fail. We are all waiting for it to rain,” he said.

The drought comes at a time when the country is already facing economic turmoil, with inflation reaching a staggering 99%, and the country’s external debt mounts.

“The situation is dramatic,” head of the commercial ports chamber and soybean industry body Luis Zubizarreta, was quoted as saying in the Reuters report.

“It impacts the country’s entire economic situation and the income of foreign currency at a very critical moment for Argentina,” he lamented.

Tags: corn, USDA, wheat, drought, forecast, yield, imports, soy, Argentina, Morocco, exports