Argentina’s 2020/21 wheat harvest forecast reduced by 1m tons due to drought

The Rosario Stock Exchange reduced its estimate for wheat production in Argentina in the 2020/21 harvest by 1 million tons. The new expectation is that the country will harvest 17 million tons, a reduction of 24.4% compared to the 22.5 million tons harvested in the past cycle.  According to the agency, the reduction is due to the prolonged drought in some of the main cultivation regions in the country.

The Exchange pointed out that the north of Argentina has had no relevant rain for eight months, while in the west and center of the agricultural area, the drought has lasted six months. “The lack of rain is aggravated at a time when the area is going through its most critical stages,” said the Exchange in a statement.

The yield projection is 2,880 kilos per hectare, well below the 3,250 kilos per hectare projected at the beginning of the harvest. Argentina is one of the main suppliers of wheat to Brazil, with 81.2%. See the graph below:

Brazilian Wheat Imports and its Main Origins | Jan to Aug 2020 | TEU

Source: DataLiner (To request a DataLiner demo click here)

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