Argentina’s wheat crop will be 300,000 million tonnes smaller than expected due to abnormally cold October weather — below-average temps, heavy rains and damaging hail have affected key growing regions, the Buenos Aires Grain Exchange said Thursday.
The wheat crop will now be 19.2 million mt versus the exchange’s previous estimate of 19.5 million mt.
Late-season rains appeared to have saved what was looking like a poor Argentinian harvest, but output is now expected to climb just 1.2 mt from last year’s 18 mt — nowhere near enough to offset substantial European and Aussie losses.
Australia previously lowered its wheat forecast by 13%.
While at the same time Russia and Ukraine are expected to run out of surplus supplies by the end of the year, forcing buyers to seek shipments from alternative origins.
Expect higher food prices and even shortages in the coming months.
Meanwhile in Argentina, soybean plantings are delayed in Córdoba and San Luis due to a lack of rain, while excess precipitation in the centre of Buenos Aires is stopping farmers from starting planting there.
Stay tuned for updates.
GSM = Unpredictable & Extreme Weather = Crop Loss