BUENOS AIRES: Argentine wheat production could fall 25% in the country’s central producing region during the 2022/23 season, due to dry weather and creeping costs, the Rosario grains exchange said on Thursday.
Argentina is a major grains producer and exporter, but the key commodity market has been disrupted by Russia’s invasion of Ukraine, both of which are major global wheat suppliers.
Less planting and lower yields are both expected in the key farming region compared to the previous harvest, the Rosario grains exchange added in a report, which pointed to reduced use of fertilizers due to their higher costs. The report forecast that wheat output in the central farming region would decline by 2 million tonnes, from 7.8 million tonnes produced during the 2021/2022 cycle, as planting is seen down by 10% and use of fertilizers down 20%.
The grains exchange also noted that an extended La Niña weather pattern is expected through the winter and could extend into next spring, which would reduce soil moisture as temperatures rise. In the 2021/22 crop, Argentina produced nearly 22 million tonnes of wheat, according to the Buenos Aires grains exchange, which also warned of a reduction in the wheat growing area, where planting is about to begin.
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