MarketsFarm — Argentina’s 2022-23 soybean crop is likely much smaller than official projections as high temperatures and a lack of moisture cut into yields, according to an update from the U.S. Department of Agriculture’s Buenos Aires attaché.
The USDA post from the South American country pegged the soybean crop at only 36 million tonnes, which would be 9.5 million tonnes below USDA’s current official projection.
While recent rains will help yields to some extent, the attaché noted more precipitation will be needed in February for a substantial recovery.
“Early planted soybeans will see substantially lower yields than normal,” according to the attaché report, adding “late-planted soybeans still have time to recover if rains improve, but the extent of late planting will likely place a ceiling on yields even in areas where drought and heat conditions moderate.”
Argentina’s sunflower production is also expected to be hurt by the dry conditions, with the USDA attaché pegging the crop at four million tonnes. That compares with the USDA’s official estimate of 4.6 million tonnes.
