Argentine Soy Prospects Hampered by Most Rain in 50 Years
Argentina is the world’s number one exporter of soybean oil and the third largest exporter of soybeans. However, its production forecast is set to be cut as the highest amount of rainfall in 50 years is hampering harvest and reducing yields.
Rainfall in Santa Fe and Cordoba in the Pampas region over the past 32 days has been equal to the rain that fell in six months in 2014, flooding more than 1 million acres, and causing the deaths of 10 people and the evacuation of 2,500. The Union district in Cordoba received 15.4 inches (392 millimeters) of rain year to date – a 65% increase over the seven year average.
Previous forecasts for Argentine soybean production were set at a record 58 million tons, however conditions are so bad that production estimates are impossible, and a firm forecast will not be available until next week, as the Buenos Aires Grain Exchange assesses that extent of damage that may result in ‘significant losses’ to the crop.
Because the rains and flooding are occurring at the beginning of harvest, machinery cannot access fields and fungus has become a concern. Cordoba province issued an alert for Asian rust for the first time since 2007, although no fungus outbreaks have been detected as of yet.