Argentina crops threatened by ongoing drought despite recent rainfall

Buenos Aires | Reuters — Recent rains in Argentina’s agricultural heartland have not alleviated concerns that ongoing drought could further hurt crop yields, the Rosario grains exchange said in a report released on Monday.

Argentina, a leading exporter of processed soybeans and other grains, has been hit by a nearly month-long drought playing out in the Southern Hemisphere’s summer. A recent heat wave has intensified concerns for the crops.

While rains fell over the country’s major farmland last weekend, the grains exchange noted in its weekly crop weather report that the precipitation varied widely over the area. It also urged more monitoring going forward.

Some analysts argue that the rains arrived too late to reverse damages caused by the drought.

Last week, the exchange cut its 2024/25 corn crop forecast to 48 million metric tons due to adverse weather, down from the 50 million to 51 million ton harvest previously estimated.

It also acknowledged that soybean production will fall short of its prior forecast of between 53 million and 53.5 million tons, but did not provide a new estimate.

— Reporting by Walter Bianchi