New rains in Argentina’s farmlands a ‘blessing’ for corn and soybeans

Argentine farmers received a “blessing” of 50-60 millimeters (2-2.4 inches) of rain in recent hours, providing relief to the country’s thirsty corn crop and an opportunity for farmers to begin sowing the soybeans campaign, the Rosario grains exchange (BCR) said on Thursday.

Up to 30 millimeters of rain fell in Argentina’s agricultural region over the weekend, on top of some 45.5 millimeters the previous week – a needed boost after a drought battered the country’s farming heartland in winter and early spring.

Argentina is a top global exporter of soybean oil and meal, and the world’s no. 3 exporter of corn.

“Recent rains have been a balm to calm the anxiety among producers,” the BCR said, adding that “corn has responded well to the recent rainfall.”

Corn crops planted between October and September urgently needed water, according to the exchange. Soybean planting also needed rains to increase soil moisture.

The Buenos Aires grains exchange (BdeC), meanwhile, said in a weekly report on Thursday that thanks to the rains 86.7% of the area planted with corn are in conditions considered good or normal – up 10.3 percentage points from a week ago.

In the case of Argentina’s important wheat crop, however, the recent rainfall came too late, leaving the crop to go through key development stages amid adverse weather conditions, it said.

The BdeC on Thursday cut its estimate for the 2023/2024 wheat harvest by 5% to 15.4 million metric tons, noting the impact of frosts and drought.

The Rosario’s exchange forecast for the 2023/2024 wheat harvest is even lower, at 14.3 million tons.

The BCR expects drier weather conditions in upcoming weeks, with a greater presence of the spring sun, which it hopes will boost the impact of recent precipitation.

Argentine farmers have planted about a quarter of the 8.5 million hectares (21 million acres) planned for the 2023/24 corn season, which is expected to produce a harvest of 56 million metric tons, according to the BCR. Planting for the 2023/24 soybean season is just beginning, which the exchange estimates will have an output of 50 million tons.
Source: Reuters (Reporting by Maximilian Heath; Writing by Valentine Hilaire Editing by Marguerita Choy and Sandra Maler)