The Safras & Mercado consultancy revised Argentina's soybeans production estimate for 2022/2023 of some 24.8 million tons, dramatically down from the previous forecast in March of 31.4 million tons.
The latest estimate points to a drop of 6.6 million tons in Argentine soy production. The previous harvest year was 43 million tons.
As a result, the reduction represents a 42% decrease compared to the same period the previous year. The planted area for the 2022/2023 market year was 16.305 million hectares.
This figure is in line with the 2021/22 harvest acreage. However, the harvested area for the 2022/2023 harvest was revised to 13.643 million hectares from 15.156 million hectares in March.
“New harvested area losses were recorded because the crops did not develop well and were unable to flower or grow pods to begin grain filling,” said Bruno Todone, an analyst at Safras & Mercado.
The most affected area continues to be the Pampas region, with yields that show a very sharp drop compared to past results.
This not only means very hard times ahead for farmers but also for the Argentine Treasury which could see income from taxes on agriculture drop anywhere from 9 to 15 billion US dollars.