Argentina Grains Exchange Lowers Corn and Soybean Production Forecasts Due to Drought
The Rosario grains exchange has cut its 2024/25 corn forecast to 48 million tons due to drought conditions, impacting both corn and soybean yields in Argentina, the third largest corn supplier globally. Limited rainfall is expected to affect soybean production as well.
The Rosario grains exchange in Argentina has lowered its forecast for the 2024/25 corn harvest due to an ongoing drought. The new estimate stands at 48 million metric tons, down from a previous expectation of 50 to 51 million tons. Factors such as extreme temperatures, low humidity, and high solar radiation have critically impacted early corn development.
Argentina is a significant player in the global grain market, ranking as the third largest supplier of corn and the leading exporter of soybean meal and oil. The exchange has also revised its soybean production forecast, indicating it will fall below the earlier estimate of 53 to 53.5 million tons, although no specific new figure was provided.
The prolonged lack of rainfall affecting Argentina’s agricultural heartland has raised concerns about soybean yields and necessitated the dismissal of previously optimistic productivity scenarios. While the exchange anticipates some precipitation in the near future, it advises that the amount of rainfall expected will be limited.
In summary, the Rosario grains exchange in Argentina has significantly reduced forecasts for both corn and soybean production in response to severe drought conditions. Key contributing factors to these adjustments include extreme weather conditions that adversely affect crop yields. Furthermore, while slight improvements in rainfall are anticipated, they are expected to be insufficient to restore previous productivity levels.
Original Source: www.agriculture.com
