MARKET DEVELOPMENT
Argentina soy, corn outlook at risk of more cuts as yields disappoint
Argentina soy, corn outlook at risk of more cuts as yields disappoint
17.03.2022 (www.nasdaq.com) - By Maximilian Heath
BUENOS AIRES, March 17 (Reuters) - Argentina's 2021/22 soybean, corn and sunflower harvest forecasts could be cut further, the Buenos Aires grains exchange said on Thursday, citing lower-than-expected yields due to adverse weather conditions that have hit crops this year.
The entity, which slashed corn and soy production estimates earlier in the year due to drought, currently forecasts a soybean harvest of 42 million tonnes, corn at 51 million tonnes and the smaller sunflower harvest at 3.3 million tonnes.
Argentina is the world's leading exporter of soybean oil and meal, the second largest exporter of corn, and a key global supplier of sunflower and its derivative oil and meal. Global grains prices are soaring due to the war in Ukraine.
In its weekly crop report, the exchange said that in recent days the first soybean harvesting had started in the north of the country's farm belt, with yields of between 2-4 tonnes per hectare, and an average below the last five campaigns.
"If this trend continues in the main producing regions, it could affect our current production projection," the exchange said, adding that lower-than-expected production of corn could force it to reduce its estimate for that crop too.
Argentine farmers have threshed nearly 7% of the area planted with corn, it said.
On sunflower production, which has come into focus amid a global supply crunch linked to Russia's invasion of Ukraine, the entity said the average yield had continued to decline in the past week with the advance of the harvest.
The crop was hit by drought earlier in the year and heavy rains hitting plants in the southern farming zone.
Argentine farmers have harvested around 58% of the planted area for sunflower.(Reporting by Maximilian Heath; Editing by Adam Jourdan and Tim Ahmann)
((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.thomsonreuters.com@reuters.net))