Bad and good news from Argentina. Wheat exports are expected to hit their lowest point in eight years because of climate effects, especially La Niña ravaging the country’s crops for the third consecutive reason, points out the Rosario Grains Exchange (BCR)
Argentina’s foreign sales declarations (DJVE), which account for the volumes already committed to exports, are close to 8.9 million tons. However, the government allowed part of this volume to be exported in the next season since there were not enough stocks available this season.
Season-ending stocks are forecast at 1.72m tons, the lowest in five seasons. In 2017/18, there were 1.2 million tons in stock. Production in the current season is forecast at 11.5 million tons, half of last year’s 23 million. This is the lowest crop since 10.9 million in 2014/15. Productivity, at 2.3 tons per hectare, is the weakest since 2008/09, when 2.11 tons per hectare were harvested.
Finally, Argentine wheat prices reported by industry regulators, measured in dollars per ton and converted at the official exchange rate, show values much higher than the market average and are the highest since 2012/13.
On the bright side, total consumption of fertilizers in Argentina added to 4.54 million tons in 2021/22, setting a record, reported the Buenos Aires Grain Exchange. The volume was 12% higher than the previous harvest season.
The increase in acreage and the increase in the number of applications drove the growth. The area destined for corn grew by 900 thousand hectares (13%), and those for wheat and barley grew by 500 thousand hectares (3% and 33%, respectively).
According to the exchange, the crops that most consumed fertilizers were corn and wheat, with 37% and 33% of the total used in the country. Soybeans accounted for 16% of the volume, barley for 7%, and sunflower for 3%.
Nitrogenous fertilizers were the most used, representing 59% of the total. Phosphates accounted for the other 41%.