Argentina: The government reaffirmed that the supply of wheat is secured despite the drought

Sergio Massa, the minister of economy, and Juan José Bahillo, the secretary of agriculture, noted that the projected production of cereal is substantially more than anticipated for 2023.

The Government is more hopeful about the wheat crop, which was hampered by the drought and late frosts, in contrast to private estimates.

The most recent official report predicts a volume of 13.3 million tons, which is 100,000 tons fewer than a month ago and 39% less than previous season, with a surface that was updated lower to 5.9 million hectares.

In any case, the official estimate exceeds the unofficial ones: Rosario Stock Exchange’s forecast (11.3 million tons) was exceeded by 2 million tons, and the Buenos Aires Grain Stock Exchange by 900,000 tons (12.4 million tons).

According to the Secretary of Agriculture’s efforts to date, 81% of the national viable area has been harvested, compared to 80% in the previous cycle.

The areas most devastated by drought were the NOA and Chaco, where the harvest came to a conclusion with extremely low yields of only 10 qq/ha. It has nearly reached completion in the provinces of Córdoba and Santa Fe, where yield values have averaged 18.8 and 23.2 qq/ha, respectively.

The province of Buenos Aires has a sowing progress rate of 66%, with yields estimated at an average of 26.8 qq/ha despite being highly variable.

Juan Jose Bahillo, the Secretary of Agriculture, tweeted on his social network that “the wheat estimate for the 2022–23 cycle will reach 14.9 million tons, which provides both the internal supply and the exportable balance so that the private enterprises fulfill their promises” (13.3 million tons).

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Despite suffering from one of the worst droughts in recorded history, the official continued, “I commend the extraordinary work of the producers to attain a volume of wheat that is in line with the average of the last decade.”

The announcement made by Bahillo was welcomed by Sergio Massa, the economy minister. “Good news for Argentines: The wheat harvest report gives us far higher hopes for 2023 than we had anticipated. Despite the drought and harsh circumstances, we are very grateful for the producers’ efforts “the published report. Minister on social media.

The amount for export will reduce to only 4.75 million tons, approximately 10 million tons fewer than the previous cycle, or a drop of 68%, according to the official work.

In light of this circumstance, the Rosario Stock Exchange has already predicted that cereal shipments will be at their lowest level in the previous eight years.

Barley was impacted by the weather as well. Continuing the report on the agricultural portfolio, as of 12/22, the harvest had increased by 71% compared to the prior campaign’s progress of 69%.

Due to the scarcity of water that the crop experienced during its whole life cycle, it was abandoned in the provinces of Santa Fe and Santiago del Estero, yields being extremely poor. 17.6 and 11.3 qq/ha, respectively, are the averages.

Only a few properties in the southern zone of the provinces of Cordoba and Entre Ros are still available for construction.

70% of the harvest has been completed in Buenos Aires, the primary producing province. The northern region is where it finished or is going to end, leaving the south-central region to raise the most lots.

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So, with a national average yield of about 29.3 qq/ha, the amount of grain produced from barley is 4.70 million tons, which is a 10% decrease from the previous season.

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