One of the top grain exchanges in Argentina dropped its forecast for the soybean crop by one million metric tons. The impact of a drought is becoming clearer on the 2024-2025 soybean crop.
The Buenos Aires exchange now predicts the crop’s output to reach 48.6 million tons. That’s down from its prediction of 49.6 million tons published a week earlier. Argentina is the world’s largest exporter of soybean oil and meal. The lower output was due to a drought that reduced yields in the country’s northeast region.
“High temperatures and the prolonged water deficit have caused heat and water stress in the Northeast Area,” the exchange said in its weekly report. “These adverse conditions have impacted plant stands and the growth of reproductive structures, reducing yield potential by 22 percent.” Reuters also says approximately 10 percent of Argentina’s total area sown with soybeans is in the northeast, totaling about 4.6 million acres.
