Argentina’s Rosario Grains Exchange has reduced its 2024/25 corn forecast to 48 million metric tons, citing drought impacts. Soybean projections have also declined due to a lack of rainfall. These conditions pose risks for Argentina’s agricultural sector, a key player in global grain markets.

The Rosario Grains Exchange in Argentina has revised its 2024/25 corn harvest forecast downward due to ongoing drought conditions affecting the country. The new estimate is set at 48 million metric tons, a decrease from the previous range of 50 to 51 million tons. Key factors behind this adjustment include extreme temperatures, low humidity, and elevated solar radiation, which have negatively impacted early corn growth during a critical period.

Argentina ranks as the third largest supplier of corn worldwide and is the top exporter of soybean meal and oil. In addition to corn, the Rosario Exchange has also decreased its soybean production forecast for 2024/25, lowering it from the previous estimate of 53 to 53.5 million tons, although a specific figure has not been provided. The lack of rainfall over the past month has significantly impacted soybean yields, leading to the exclusion of previously considered high productivity scenarios.

The exchange did note an expectation for some precipitation in the coming days; however, it anticipates that this rainfall will be minimal and insufficient to alleviate the ongoing drought conditions. This situation underscores the challenges faced by Argentina’s agricultural sector and its critical impact on global grain supplies.

In summary, the Rosario Grains Exchange has revised its corn and soybean production forecasts for 2024/25 due to adverse drought conditions. The corn forecast has been lowered to 48 million metric tons, while soybean production is also expected to fall, with high productivity scenarios no longer viable. The situation highlights the significant challenges facing Argentina’s agriculture amid these climatic adversities.

Original Source: www.agriculture.com