BUENOS AIRES, Dec 29 (Reuters) – Argentina’s estimated wheat production for the 2022/2023 season could be slashed again in coming weeks as yields come in lower than expected, the Buenos Aires grains exchange said on Thursday.
Late frosts and a historic drought have caused the exchange to cut its estimate for the South American country’s wheat crop to 12.4 million tonnes from an initial estimate of 20.5 million tonnes seen at the beginning of the season.
Argentina is a major global exporter of wheat.
Lots harvested in the center and south of the capital Buenos Aires “continue reporting significant variability and average yields below those initially expected as a result of the late frosts in October,” the grains exchange said in its weekly crop report.
“If this trend continues, the current production projection of 12.4 million tonnes could be changed again,” it added.
Until Wednesday, Argentine farmers had harvested 91.4% of the 6.1 million hectares (15 million acres) planted with the grain.
Drought has also delayed the planting of Argentina’s soy cash crop, although recent rains helped little, the exchange said.
“If new rains do not register that allow the progress of the seeders to be unlocked, some 500,000 hectares could be left out of the current productive cycle,” it said. The current soybean planted area is estimated at 16.7 million hectares.
Argentina is the world’s leading exporter of processed soybean, but its sowing, currently 72.2% complete, is 9.2 percentage points delayed when compared to the previous season.
The exchange also said that Argentine farmers have planted 62.9% of the 7.3 million hectares seen for 2022/2023 corn season.
(Reporting by Maximilian Heath; Editing by David Gregorio)
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