BUENOS AIRES, ARGENTINA — With a severe drought impacting wheat production, Argentina has been unable to increase exports at a time when the global supply situation is tightening, according to the Global Agricultural Information Network report from the Foreign Agricultural Service of the US Department of Agriculture (USDA).
“Most analysts indicate that Argentina lost a good opportunity to expand exports at a moment in which world supply and demand are tight due to the Ukraine-Russia war,” the USDA said. “The combination of local policies and harsh, dry weather has limited that possibility.”
Argentina is forecast to export 12.35 million tonnes of wheat, including wheat flour in its wheat equivalent, in 2022-23, nearly 4 million tonnes lower than the 2021-22 estimate.
Production also is expected to decline significantly in 2022-23 to 18.5 million tonnes, down from a record 22.1 million tonnes from the recently completed marketing year.
“The decrease is due to a smaller acreage planted than earlier projected estimates, as most of Argentina’s crop land is suffering a significant dry cycle, with more than 70 days without rain,” the report said.