How bad are the crops in Argentina?

Bad news follows bad news. Unfortunately, this is what the weather has been doing to Argentina’s agriculture during the 2022/2023 crop year.

After being affected by La Niña for the third year in a row, key producing regions in the country are facing one of the worst droughts of the last four decades. Corn and soybean production is likely to be highly impacted by above-average temperatures and much below-average precipitation in 2023.

According to the Buenos Aires Grain Exchange, current wheat production in the country was roughly 55% of what was harvested last year. And when everybody thought that it could not get worse, a frost affected part of the country in the middle of the summer some weeks ago (possible damages have not yet been accounted for).

While all of this is no longer news, the extent of this situation in South America may continue to affect international markets in the coming months. For this, the question market analysts and traders are now asking is: how bad are Argentina’s corn and soybean crops going to be?

Source : more Details

Leave a Reply

Your email address will not be published. Required fields are marked *