In parallel, as indicated by the Buenos Aires Grain Exchange The corn harvest for commercial grain destination advances in the entire national agricultural area, reaching a progress of 69.9 %. This represents a week-on-week advance of 7 points. “In the central north areas of Santa Fe, Núcleo Norte and Centro-East of Entre Ríos, rainfall records were scarce and in this framework, 86.1% of the squares in these areas present conditions between fair and bad. On the other hand, the late plantings and second occupation are going through vegetative stages with little water demand, which allows them to maintain a condition between normal and good in 82.3% of the farms at the national level”, details the entity.
While everything is uncertain regarding the soybean and corn campaign, for now, the first projection is that foreign currency inflows in 2023 would fall by at least US$7,000 million and the production decline could reach up to 20%. The hope is that from the end of February a period with more rainfall will begin and the drought will be left behind, but the truth is that the economic impact still seems complicated
international prices
Something that puts more pressure on the economy are the international prices of the main agricultural commodities. This Thursday, soybeans fell again in the Chicago market and so far this year it has lost almost US$20 per ton. In the last round it closed at $540.41, after losing more than $4 in a single day.
The international market remains alert to a possible global recession and to the increasingly improbable recovery of China that continues to be very complicated by the advance of the Covid.
The good news for local soybeans is that possible rains are forecast for the middle of next week for the main agricultural areassomething that could improve the condition of the implanted crop and speed up planting, which is still very late compared to previous cycles.
For its part, corn also closed lower this Thursday, after losing US$0.39 per ton. The cereal follows the same dynamics as soybeans and in the local market the operators are expecting the results of the harvest and the possibility that the Government should intervene in the export market. Something that for the moment has been ruled out by the ruling party but that can be a tool to ensure the supply and internal prices of a key input for animal feed.
Finally, wheat in Chicago had a slight rise of US$0.46 per ton to close the wheel at US$274.38. The cereal harvest is almost complete and the final production would be around 12.3 million tons, thus practically showing a 50% drop compared to the previous cycle.
Source: Ambito
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