Prolonged drought will limit Argentina’s soybean crop to 47 million tonnes this year, about 10 million tonnes less than usual, estimated the USDA in its monthly WASDE report. The USDA cut its estimate of the harvest by 7 million tonnes from its February forecast, citing “lower projected yields resulting from dry conditions throughout much of the growing region in January and February.”
Argentina is the No. 3 soybean grower in the world and the leading exporter of soybean oil and soybean meal. The No. 2 grower, Brazil, is forecast to harvest 113 million tonnes in 2017/18, close to last year’s record crop of 114.1 million tonnes. Brazil and Argentina are the major export competitors of the United States, the largest soybean grower in the world.
Drought also reduced the outlook for Argentina’s corn crop, now forecast at 36 million tonnes, 3 million tonnes less than predicted one month ago. “Continued heat and dryness during February and into early March reduces yield prospects for late-planted corn. Yield results for early planted corn have also been lower than expected,” said the USDA. In many years, Argentina is the world’s No. 3 corn exporter, trailing only the United States and Brazil.