By Maximilian Heath
BUENOS AIRES (Reuters) – Argentina’s wheat acreage estimate for 22/23 could be cut for a third time if drought persists in most producing regions, the Buenos Aires Grain Exchange (BdeC) said on Thursday. Monday, adding that the chances are slim for heavy rain.
Argentina is an important world exporter of wheat and a leader in soybean oil and meal. Its role as a grain supplier grew during hostilities between Russia and Ukraine, normally the world’s biggest wheat exporters.
However, difficult planting conditions and high fertilizer prices are hampering the South American country’s ability to increase wheat production.
Argentina’s cereal acreage is currently seen at 6.4 million hectares by the exchange, from its initial forecast of 6.6 million hectares about a month ago.
“If the drought scenario is not reversed in the short term, it could result in a further adjustment of our area projection,” the exchange said in its weekly grain report, adding that the timeframe for sowing in western and central agricultural areas -North of the country is near its end.
The lack of rain makes it difficult or prevents the sowing of the cereal. As of Wednesday, Argentine producers had planted 47.4% of the estimated area, 10 percentage points below the rate recorded a year ago, the exchange said.
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