BUENOS AIRES, ARGENTINA — Soybean and corn production in Argentina are forecast to increase sharply in the 2023-24 marketing year, according to the most recent projections from the Rosario Grain Exchange.

With recent rains providing relief from the country’s worst drought in nearly 60 years, the Exchange forecast soybean production to reach 48 million tonnes, up from 20 million in 2022-23, while corn output is projected at 56 million tonnes, up from 34 million the previous year.

The world’s largest exporter of soy meal, Argentina is expected to increase its soybean planted area by 6% to 17 million hectares, according to the Exchange.

Earlier this month, the Foreign Agricultural Service (FAS) of the US Department of Agriculture provided a similar optimistic wheat production forecast, projecting Argentina’s wheat crop in 2023-24 to increase by 41% to 17 million tonnes, up from 12 million the previous year. Exports are expected to nearly triple from 4.6 million tonnes last year to 12 million this year.

A larger wheat crop in Argentina would be a welcome development as several other leading wheat producers, such as Australia, are expecting smaller crops in 2023-24 and Russia’s withdrawal from the Black Sea Grain Initiative likely will lead to a reduction in Ukrainian wheat shipments.