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 stock exchange announced that 2022/23 wheat production, now at 12,4 million Tonnen is estimated to “show a return below expectations”.
"If this trend continues, it could affect our current valuation," officials said.
At the start of the May campaign, the exchange estimated the wheat harvest at 20,5 million tons. However, since then, drought and frost have had a major impact on these indicators. Argentina is a major global exporter of Wheat and 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 the sowing of Soybean in 2022/23, which will reach 16,7 million Hektar is estimated to still be ongoing despite some rainfall in recent days due to "lack of surface moisture and high temperatures".