Rosario Stock Exchange cuts Argentina 2019-20 wheat output estimate 7% to 20 mil mt

Argentina-based Rosario Stock Exchange has cut its projection for the country’s wheat production in 2019-20 to 20 million mt, 7% lower than the projection made in August, due to dry weather conditions.

“The extensive dry period that covered the cold quarter and continues to spread over October has taken away the chances of wheat production reaching 21.5 million mt that was projected two months ago,” the exchange said.

In 2018-19, wheat production in Argentina was 19 million mt, according to the exchange.

The weather also affected wheat sowing, with the area of planting adjusted to 6.7 million ha, about 170,000 ha less than the earlier estimate and 3.7% lower than 2018-19.

In Argentina, wheat can be planted as early as May and as late as September. The largest quantity is seeded in July and August, which is mid-winter in Argentina.

The crop harvest begins in December, depending upon the time of sowing and weather conditions.

Major wheat planting areas in the country are Buenos Aires, La Pampa, Santa Fe and Entre Rios.

There are large areas affected by the unfavorable weather, with damage to yields that range from 10% to 40%. About 350,000 ha of wheat planted are considered to be in bad condition, an estimated 200,000 of which will not be harvested, the exchange said.

Argentina is one of the top 10 exporters of wheat, according to the US Department of Agriculture.
Source: Platts