The Rosario Grains Exchange in Argentina has reduced its 2024/25 corn forecast to 48 million metric tons due to drought conditions. The exchange attributed this change to extreme temperatures and low humidity. Soybean production forecasts have also been lowered, with concerns regarding diminished yields due to a lack of rain. Minimal rainfall is anticipated in the near future.

The Rosario Grains Exchange in Argentina has revised its 2024/25 corn harvest forecast downwards due to an ongoing drought affecting the region. The new estimate stands at 48 million metric tons, a decrease from previous projections of 50 to 51 million tons. This adjustment is attributed to extreme temperatures, insufficient humidity, and elevated solar radiation, which have adversely impacted the critical early stages of corn development.

Argentina ranks as the third-largest global supplier of corn and is the leading exporter of soybean meal and oil. In the same report, the exchange indicated that soybean production forecasts for 2024/25 have also been lowered from previous estimates of 53 to 53.5 million tons. However, a specific new figure for soybean production was not provided.

The lack of rainfall over the past month has led to concerns regarding soybean yield reductions. Consequently, the exchange has dismissed previously optimistic productivity scenarios that had been anticipated. While some precipitation is expected in the near future, it is predicted to be minimal and will not significantly alleviate the drought conditions.

In conclusion, the Rosario Grains Exchange’s reduction in corn and soybean production forecasts highlights the severe impact of drought on Argentina’s agricultural output. The factors influencing these changes include extreme weather conditions, which have raised serious concerns about crop yields in the region. Moving forward, the limited rainfall expected may further challenge the agricultural sector’s recovery.

Original Source: www.agriculture.com