BUENOS AIRES, ARGENTINA — Fewer planted acres and lower yields are expected in a key wheat-growing region of Argentina in marketing year 2022-23, according to a report released on April 21 by the Rosario Grains Exchange.

The report said dry weather and rising production costs could conspire to reduce output by 25%, from 7.8 million tonnes in 2021-22 to 5.8 million in the coming year.

It said less fertilizer use was likely due to the rising cost of the input.

The Foreign Agricultural Service of the US Department of Agriculture, which has yet to issue a forecast on Argentina’s 2022-23 wheat crop, estimates this year’s output at 21 million tonnes, nearly 20% higher than in 2020-21.

Countries such as Argentina, which annually ranks in the top 10 in wheat production and exports, are expected to play a critical role in the coming months to help offset dwindling Ukrainian exports, which have been mostly shut down due to Russia’s military invasion.