Persistent drought, for the third consecutive year, in several central regions of Argentina raises concerns about crop prospects, particularly for soybeans, although authorities are not alarmed.
According to a report released a few days ago by Sissa, an organization that monitors droughts, more than 54% of the Argentine territory currently suffers some degree of drought or water stress, of which 14% is affected by “serious” drought and nine by cent “of extreme or exceptional drought”.
Linked to the persistence of the La Niña phenomenon and the decrease in rainfall, “the third consecutive year of drought that plagues Argentina has had serious repercussions in different regions, with lower flows and poor harvests,” he noted in that document.
Several provinces, such as the central cities of Córdoba and Buenos Aires and, further north, Santa Fe, have reported in recent weeks serious local effects on crops, planting impossible and animal deaths.
The production minister for the province of Santa Fe, Daniel Costamagna, estimated that “at least 30,000 head of cattle” died in the province (which is the size of England) due to the drought.
According to the Rosario grain exchange, a benchmark for the country’s largest grain port, grain exports, which had exceeded US$43 billion in 2021-2022, “should fall 21% (this year) in the best scenario, 33% in the worst”. , depending on the rainfall that may occur.
In the case of soybeans, of which Argentina is the world’s leading exporter, in the form of flour and oil, the forecast of 48 million tons for the future campaign could be 41 million in the best of cases, or even 35.5 million in the worst case. according to the exchange.
But, during this weekend, the Minister of Economy, Sergio Massa, dismissed any alarm, considering that “the impact of the rain after the weekend (in the central regions) and for a week will provide enough humidity to obtain a good annual harvest”. soybean.
Regarding wheat, whose harvest has already finished, he highlighted that the result of 14.7 million tons, above the 10 million that was feared due to the drought, “is less than what a good harvest would be, but not the catastrophe that it was feared”. , neither in economic terms nor in terms of market supply.
Massa announced a commission to monitor the agricultural sector, region by region, sector by sector, soil by zone (wet or dry), to accurately determine the affected producers.
Source: TSF
