Good News for Argentina’s Central Bank: Wheat Harvest Revised Upward to Over 19 Mln T

Argentina’s Central Bank received a boost with the announcement that the 2024/25 wheat harvest is now projected at 19.3 million tonnes, up from the previous estimate of 18.8 million. The Rosario Board of Trade (BCR) attributed this increase to higher-than-expected yields, bolstered by favorable weather conditions in November, as highlighted in its monthly grain report released Wednesday.

“Cool weather and significant rainfall in November have proven pivotal, especially in the Buenos Aires Province, Argentina’s largest wheat-producing region,” the BCR noted. With this revision, the current wheat campaign is poised to be the third most productive of the last 15 cycles, trailing only the record-breaking 2021/22 season (23 million tonnes) and the 2019/20 harvest (19.5 million tonnes).

Farmers have already harvested 58% of the wheat-planted area, with the season ending in January, according to the BCR. Meanwhile, favorable rainfall in recent weeks has also improved conditions for soybean and corn crops, currently in their planting stages. As of now, 62% of the soybean area and 64% of the corn area have been planted. The BCR forecasts soybean production at 53–53.5 million tonnes and corn output at 50–51 million tonnes for the 2024/25 season.

Rapid Progress in Corn Planting

Argentina’s corn harvest is also expected to deliver encouraging results. LSEG (London Stock Exchange Group) reported Wednesday that corn production for 2024/25 is projected at 48.2 million tonnes, a 1% increase from previous estimates. Improved soil moisture and the swift pace of planting contributed to this upward revision.

“Despite regional discrepancies in soil moisture, overall conditions across much of the key Pampas growing regions have significantly improved compared to the start of the season, thanks to better-than-expected November weather patterns,” the report stated.

Data from Argentina’s Ministry of Agriculture indicates that 60% of the corn planting has been completed nationwide, ahead of last year’s 54% and the five-year average of 53%. However, LSEG warned that long-term yield prospects remain uncertain despite recent rainfall and improved soil moisture levels.

“Heat and drought conditions are expected from December through February, coinciding with the crop’s critical growth phase,” the report added.

In the previous campaign, Argentina’s corn harvest reached 50 million tonnes.

Source: Ámbito; more information available at: https://www.ambito.com/economia/buena-noticia-el-bcra-mejoran-estimacion-la-cosecha-trigo-y-superara-las-19-millones-toneladas-n6092292

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