Argentina’s 2023/24 soy prospects get boost from February rains

Argentina’s Rosario grains exchange bumped up its forecast for thecountry’s 2023/24 soy production by 500,000 metric tons on Wednesday, reflecting the positive impact from February’s ample rainfall.

Argentina is one of the world’s top two exporters of soybean oil and meal, along with neighboring Brazil.

In its monthly grains report, the exchange forecast soy production this season at50 million tons, compared to the 49.5 million tons previously projected.

“The rains from February onwards put a floor on yields, improved the filling conditions of early soybeans,” the exchange said, adding in the case of late-sown soybeans the rainfall had a major positive impact.

Because heavy rains continued in the first half of March, soybean production could face difficulties if the weather trend continues, a specialist said on Tuesday.

The exchange held its 2023/24 corn forecast steady at 57 million tons, but warned of the impact of the corn stunt disease caused by Spiroplasma bacteria in late corn lots in the agricultural provinces of Cordoba and Santa Fe.

“What is setting off all the alarms in the central region … is the extent and damage being observed by Spiroplasma in late corn,” the exchange said in its report.

While the disease is typical in northern parts of Argentina, the report added the pest that spreads Spiroplasma has surged in population due to dry and hot conditions, an increase in the area planted with late corn, and the staggered way in which it has been planted.

Argentina is the world’s third largest corn exporter.
Source: Reuters (Reporting by Maximilian Heath; Writing by Brendan O’Boyle; Editing by Sarah Morland and Chris Reese)