Argentina lost half of its seasonal soybean harvest in its main production area – the rich and normally humid center of the country – due to drought, the Rosario Stock Exchange said Monday.
Three successive years of drought have raised fears in Argentina that this year’s harvest, particularly of soybeans, will be significantly reduced, striking a blow to the South American country’s exports and its domestic supplies.
Argentina is the world’s largest producer of soybean oil and flour.
A new report by the institute that tracks drought said that 54% of the country was suffering from some lack of moisture, with 14% hit by severe drought and 9% by extreme or exceptional drought.
The central regions of Cordoba, Buenos Aires and Santa Fe have been worst affected.
Authorities were expecting a harvest of 19.7 million tons of soybeans in the country’s fertile central plains, but for now, “10.7 million tons are expected, and that number is falling every week,” the Rosario Stock Exchange said in a statement.
“While it was known that it would be a difficult season due to drought, what has been seen has surpassed the producers’ worst nightmares,” it said.
And grain exports, which were worth $43 billion in 2021-22, “should drop by 21% in the best-case scenario and 33% in the worst,” the Rosario Grain Exchange said.
Daniel Costamagna, the production minister for Santa Fe, said that “at least 3 000 head of cattle” have died due to drought, in a province the size of England.
Argentina’s total soybean harvest was predicted at 48 million tons for the coming season but is now expected to yield 35.5 million to 41 million tons.