Argentina is an important world corn producer. It shipped 37.5 mln tonnes of corn to foreign markets in 2021/22, accounting for 18.5% of global exports.
USDA expects that in 2022/23 Argentines will harvest a significant harvest of 50 million tons, and exports are projected at 41 million tons. It is reported by “ProAgro Group” with reference to Ahdb.
However, most of Argentina is currently experiencing a significant drought and, despite the rains predicted for next week, there is a 75% probability of La Niña from December to February. This weather phenomenon causes drought in some parts of South America and, according to the 60% forecast, it can last during January-March (National Oceanic and Atmospheric Administration, Columbia School of Climate).
In six of the last eight La Niña weather events that occurred between 2007 and 2021, yields were below forecasts and expectations. This was especially true in 2011/12 and 2017/18, when yields declined by 21% and 25% per year, respectively.
