BUENOS AIRES, ARGENTINA — Wheat production in Argentina for 2023-24 is higher than originally expected as yields improved, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

Production is estimated at 15.4 million tonnes, 2.6% higher than the USDA official estimate. With harvest nearly finished, damage from the drought during winter 2023 plus late frosts can now be measured, the FAS said.

Wheat production in 2022-23 is estimated at 12 million tonnes, 550,000 tonnes lower than USDA official estimates. Several local traders believe production was even lower, between 10.8 million and 12 million tonnes. A significant volume of unsold wheat has quality issues and much of it is being mixed with good quality wheat from the new harvest, the FAS said.

Consumption in 2023-24 is estimated at 6.9 million tonnes with wheat milling increasing 5%. Domestic wheat flour consumption grew slowly, particularly during periods of high inflaton.

“Many consumers are switching from higher-priced food products to less-expensive foods with higher wheat flour content,” the FAS said. “This is assumed to continue through 2024, resulting in an increase in flour consumption, with inflation expected to continue.”

Exports for 2023-24 are estimated at 10.2 million tonnes. This would be a significant rebound from last year, which was the lowest since 2013-14.

Corn (maize) production in 2023-24 is estimated at 57 million tonnes, 2 million tonnes higher than the official USDA estimate.

A dry environment during planting limited the area of early corn in many regions initially, but the current condition of the crop is very good, after the normalization of rains, the FAS said.

The FAS now estimates corn production in 2022-23 at 35 million tonnes, 1 million tonnes higher than USDA official estimates.

Exports in 2023-24 are projected at 41 million tonnes, while exports in 2022-23 are projected at 23.4 million tonnes.