Argentina Grains Exchange Cuts Corn, Soybean Forecast Due to Drought

By Maximilian Heath

BUENOS AIRES, Jan 15 (Reuters) – Argentina’s Rosario grains exchange trimmed its 2024/25 corn harvest forecast on Wednesday due to a drought gripping the country.

The exchange cut its corn estimate to 48 million metric tons from a prior forecast of between 50 million and 51 million tons.

The exchange pointed to extreme temperatures, low relative humidity and high levels of solar radiation as the main reasons behind its sharp forecast reduction. These factors “have aligned negatively at the most critical moment for early corn,” it added.

Argentina is the third largest global supplier of corn and the leading global exporter of soybean meal and oil.

In a report, the exchange said it also sees 2024/25 soybean production below its previous forecast of between 53 million and 53.5 million tons, but the institution did not specify a figure.

It noted that the lack of rain that has affected Argentina’s agricultural core for the past month will affect soybean yields and has made them rule out “the high productivity scenarios that were considered until recently.”

While the exchange forecasted precipitation in the coming days, it expects the accumulated rainfall to be very moderate.

(Reporting by Maximilian Heath; Editing by Brendan O’Boyle)