The year began with rains across much of Argentina’s agricultural region, giving relief to already dwindling soybean yields. Furthermore, they will make it possible to sow the batches of oilseeds and late maize that had been suspended due to lack of the necessary moisture in the soils.
Until now it had only been possible to cover 72.2% of the 16.7 million hectares of soybeans screened for this campaign, which represents a delay of 9.2% compared to the previous cycle. For his part, maize planting reached 62.9% of the estimated 7.3 million hectares and wear one Lag of 7.8% year-on-yearaccording to the survey of the Buenos Aires Grain Exchange.
Although the rains were irregular, the accumulated rains were located between 10 and 50 mm and now the activities can be restarted. In the province of Buenos Aires, the records were 35 and 50mm in Trenque Lauquen; 33 to Carlos Tejedor; 20 at Tandil; 10 at Necochea; 38 in America; 40 in Tres Arroyos; 18 in Balcarce; and 20 in Jumping.
Meanwhile Santa Fe, the rain gauge read 19 millimeters in Chabás; 15 in San Giorgio; 17 in Venado Tuerto; 10 in Pujato, Ceres and Zavalla; 30 in Teodelina, Firmat and Hernando; and only 7 in Rafaela.
In Cordoba, the rains left the highest volumes with 56 mm in the Río de los Sauces; 52 at Berrotaran; 40 in the Rio Cuarto; 35 at Villa Maria; 40 at Laboulaye; 32 in Huinca Renanco.
The province of Between rivers It did not benefit: in Concepción del Uruguay it rained only 2.5 millimeters; at Concordia 7.25; in San Jaime de la Frontera 10; and in Macia 3.5.
meanwhile a The Pampas64 mm fallen to General Pico and 30 in Santa Rosa.
For the corn planted early, the rains came late. Many of the crops have been cut early for use as cattle feed due to lack of development, and others have been passed straight to the roll as lost, in order to sow the late corn, which will happen after Sunday’s rains .
For his part, the grainswhich are normally harvested in December, have suffered from drought and frost throughout their cycle, and in much of the agricultural region the results were badwith returns that don’t even come close to covering costs.
Prices
The weather is pushing up international prices for grain and by-products, both due to lack of rain in South America and extreme temperatures in the northern hemisphere. “Drought concerns in Argentina, the world’s largest exporter of soybean oil and meal, and strong export demand have led Chicago soybean meal prices at highest prices since March 31”, explained market analyst Esteban Moscariello.
The latest soybean crop projections for Argentina range between 49.5 million tons for USDA and 40-42 million tons for private analysts. But if the drought continues, volumes will be even lower. In central Argentina, 2022 had the driest spring in 35 years according to the Rosario Stock Exchange. And 85% of that region finished the season with 50% less rain than the historical average according to the entity.
“The forward scenario is worrying and particularly for Argentina and there is no room for large production losses given the already low inventories on the market, so January could bring new price increases and good opportunities,” Moscariello analyzed.
Exchange
The consequences of this prolonged and severe drought will be reflected in the coming months with a drop in production which, in turn, will result in a lower foreign exchange income for the country, with the damage that this represents due to the importance of the contribution of sector to state coffers. The complex of oilseeds and cereals, including biodiesel and its derivatives, contributed 48 percent of Argentina’s total exports last year, according to INDEC data. By chance, in 2022, agricultural export clearance hit a record $40,000 millionthe highest figure since records were kept and 22% higher than in 2021.
In detail, the main export product of the country is soy flour, with 14.2% of the total; the second, corn with 11%; and the third, soybean oil with 6.9%
But the drought doesn’t just affect agriculture: currently, livestock and dairy farming are in critical condition due to lack of water and grass for the farm; thousands of animals die of thirst, the supply of meat and milk will suffer in a few months, as well as the products of pig and poultry production, due to the shortage of corn that there will be at the end of the busy season.
Source: Clarin
