BUENOS AIRES, ARGENTINA — Inconsistent weather conditions in key wheat-producing regions of Argentina could lead to a decline in production and export volumes, S&P Global Platts reported.
The Buenos Aires Grain Exchange said in its weekly report that the wheat crop in Buenos Aires province is in critical condition.
Dry weather conditions in the central and southern regions over the last two to three months has resulted in yield losses of around 10%-40% in some areas of Santa Fe, Buenos Aires and Cordoba, according to the Rosario Board of Trade.
Agencies have cut the 2019-20 marketing season estimates for Argentina’s wheat production. The Rosario Board of Trade now estimates the crop at 20 million tonnes, down from 21.5 million tonnes and the Buenos Aires Grain Exchange now estimates a crop of 19.8 million tonnes, down from 21 million tonnes.
Some analysts have lowered their export estimates because of declining yields. The U.S. Department of Agriculture kept its estimate steady at 14.5 million tonnes in the October World Agricultural Supply and Demand report.
In the best scenario, Argentina is expected to ship 11.5 to 12 million tonnes of wheat in 2019-20, Platts reported. That would put exports on par with Australia, which is also facing dry conditions.