The Strategist

Traders warn of sharp decline in corn exports from Argentina

02/20/2023 - 09:43

According to the Rosario Grain Exchange (BCR), corn shipments from Argentina between March and June may decline by nearly 40% from the same time last year.

This is because the current season's planted acreage has decreased as a result of an extreme drought.

BCR notes that corn shipments between March and June may only total 8.7 million tons. In the initial weeks of the planting, just 19% of the 7.3 million hectares (18.04 million acres) were planted since many farmers were waiting for rains that, in many areas, never came.

Due to the worst drought in 60 years, the BCR reduced its estimate of the corn crop last week, to 42.5 million tons, for the second time. A 55 million ton harvest was expected at the beginning of the crop cycle in September.

The entire amount of corn exported this season, according to BCR, will be 27.5 million tons.