Argentine exchange cuts soy crop forecast again, this time by 5%

"The rains at the end of May saved the wheat planting," the exchange said, adding that 2023/2024 wheat production might otherwise have ranked among the lowest in the past decade due to the drought. The report also noted that key agriculture areas such as western Buenos Aires province, plus La Pampa and Cordoba provinces, remain dry despite the recent rainfall.

Argentina's Rosario grains exchange again cut the estimate for its nearly-concluded soybean harvest, the country's most important cash crop, with the latest forecast 5% below its last one, the exchange said on Wednesday.

The exchange estimated that the 2022/2023 soybean crop will likely yield 20.5 million metric tons, down from 21.5 million metric tons previously expected. The South American country is the world's largest exporter of processed soybeans, but the most recent season was hit hard by a historic drought, leading to regular estimate cuts.

During the previous soybean harvest, Argentina's farmers produced more than double the volume currently seen. The soybean harvest is coming to the end of an "extremely bad" season, with estimated output now seen coming in 58% less than what had been forecast at the start of the cycle, the exchange said in its monthly crop report.

The report also forecasts a total harvest area for the upcoming 2023/2024 wheat season at 5.6 million hectares, while production should reach 16.2 million metric tons of the key bread and pasta grain. "The rains at the end of May saved the wheat planting," the exchange said, adding that 2023/2024 wheat production might otherwise have ranked among the lowest in the past decade due to the drought.

The report also noted that key agriculture areas such as western Buenos Aires province, plus La Pampa and Cordoba provinces, remain dry despite the recent rainfall.