“What cannot be harvested cannot be bought or sold, So it is a multi-million dollar loss for this sector”he added.
For his part, he pointed out that “This is also the result of the December soybean dollar effect, where producers anticipated sales for January, February and March.”
“This transition between the fine crops and the coarse crops is replaced by premium corn. However, it was not planted due to lack of moisture, and there we had 8 or 9 million tons that will probably be reduced very significantly. Until May we will have a low level of shipments and an equal result in terms of foreign exchange”analyzed.
In this context of extreme concern in the soybean milling sector, one of the sectors that contributes the most foreign currency to the country and which has been working with idle capacity for years, the new soybean and corn harvest projections were released this week, bringing new bad news.
Specifically, the Buenos Aires Grain Exchange brought soybean production to 33.5 million tons, thus showing a drop of 4.5 million tons compared to the previous projection. The frosts of the last weekend associated with the lack of water that the crop had been suffering caused the loss of more productive hectares. For the same reason, the corn harvest would be barely 41 million tons, that is, 11 million tons less than the previous cycle.
Finally, to add insult to injury, There may still be more cuts because the rainfall has not yet reached the core zone and a moderately intense storm front is only expected for the first week of March.