Now comes the turn of the falling corn

…that, while international markets continue to fluctuate strongly (far from the maximum prices of months ago), the prolonged moisture deficit continues to weigh on Argentina, which has already registered falls in wheat (around one million hectares so far), while it seems that corn will be the next victim. In a combination of drought, frost, high implantation costs, and lack of some basic inputs, such as fertilizers, the country’s main annual crop would already be registering a drop in its planting estimates. According to the Cereal Exchange of Buenos Aires, the negative factors for the cereal go through: “a very tight level of reserves (of humidity) at the beginning of the early sowing of the cereal, a more unfavorable input/product ratio in relation to campaigns past, and a significant increase in costs that decreases returns, in an environment of high uncertainty and increases direct competition from crops with lower investment requirements, such as first-class soybeans, especially in the center of the agricultural area.” “Faced with this panorama, a total area destined to corn destined for commercial grain of 7,500,000 hectares is projected for the new campaign, subject to the evolution of economic and climatic variables (rain, temperatures, etc.) throughout the extensive planting window”, says the entity. And, although the drop so far is not too significant, it reverses the recovery trend that the cereal brought, after the strong gap in favor of soybeans that had occurred between 2004 and 2014, a process that was generalized as “soybeanization”. ”.Forecasters show, in turn, that it is the second consecutive winter with below-average rainfall, which causes very few reserves, all are betting on the traditional “Santa Rosa Storm”, which usually occurs in the last days of August, and that would allow to recover the sowing rhythm of coarse grains.