Argentina's drought-hit farms to see more dry weather in coming days - grains exchange

Credit: REUTERS/Agustin Marcarian

By Maximilian Heath

BUENOS AIRES, July 14 (Reuters) - Conditions across most of Argentina's vast farm lands will remain mostly dry over the next week, the Buenos Aires Grains Exchange(BdeC) said on Thursday, just a few hours after its peer in Rosario cut its estimate for the wheat crop by 4.3% due to drought affecting important agricultural provinces.

Argentina is a key global supplier of wheat and the Rosario Grains Exchange (BCR) slashed late on Wednesday its estimate for the country's 2022/23 season to 17.7 million tonnes, down from the 18.5 million tonnes previously forecast, as estimated planted area fell amid ongoing dry conditions.

"Most of Argentina's agricultural regions, a big part of Paraguay's farm areas and the south of Uruguay will see scant to no rain (less than 10 millimeters)" over the next seven days, the Buenos Aires Grains Exchange said in its weekly weather report.

The forecast is a pessimistic one for Argentina's new wheat season. In its weekly grains report, the BdeC said on Thursday it might have to cut its wheat planting area for a fifth time if conditions don't improve. The outlook for now is not good.

Thanks to drought, the country has only sown wheat on 6.2 million hectares (15.3 million acres), the Buenos Aires exchange estimates, down from 6.6 million hectares calculated only a couple of months ago.

(Reporting by Maximilian Heath; editing by Diane Craft)

((M.Heath@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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