Buenos Aires | Reuters — Argentina’s Buenos Aires grains exchange on Thursday said farmers would likely leave large tracts of soy fields unharvested due to damage from a historic drought, which could lead to more cuts to its 25 million-tonne production forecast.
Argentina is the world’s top exporter of soybean oil and meal, but its 2022-23 campaign has faced what the government has called the worst drought on record. The exchange’s forecasts would signal the worst soy harvest in 23 years.
“Significant losses of harvestable area are expected, which will impact current production estimates” for Argentina’s core agricultural area, the exchange said in a weekly report.
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The exchange said farmers have so far harvested just 4.3 per cent of the 16.2 million hectares (about 40 million acres) sown this season.
It forecast corn output to reach 36 million tonnes, with yields below potential, though it said that recent cool, dry weather could benefit the harvesting process.
On Wednesday, the Rosario grain exchange cut its own soy and corn harvest forecasts to 23 million tonnes and 32 million tonnes, respectively.
— Reporting for Reuters by Maximilian Heath; writing by Sarah Morland.
