The prognosis for the Argentine wheat production is likely to post fresh declines on lower-than-expected yields, the Buenos Aires Grain Exchange said, as the grain harvest progresses at the height of a prolonged drought, Hellenicshippingnews reports.
In the weekly crop report, the exchange announced that 2022/23 wheat production, now estimated at 12,4 million tons, "shows a yield below expectations".
"If this trend continues, it could affect our current valuation," officials said.
At the beginning of the May campaign, the exchange estimated the wheat harvest at 20,5 million tons. Since then, however, drought and frost have had a major impact on these indicators. Argentina is a major global exporter of wheat as well Soybean and Corn.
As of Wednesday last week, Argentine farmers harvested 23% of the wheat acreage, down 22 percentage points from the harvest a year ago.
The exchange added that the delay in planting soy in 2022/23, estimated at 16,7 million hectares, is still ongoing despite some rains in recent days due to "lack of surface moisture and high temperatures".