Argentina, one of the world’s largest producers and exporters of grains, would achieve an agricultural harvest of 138.4 million tons in the 2019-2020 campaign, 5.5% less than in the previous cycle, according to a private report released this Thursday.
According to the projections of the IES consultancy, despite this planned reduction, the harvest of the current campaign will be the second historical harvest behind the record achieved in the 2018-2019 cycle.
The agricultural campaign 2019-2020 is in full development, with the advance the planting of the main crops of Argentina, soybeans and corn.
According to the report, the total planting of the current agricultural cycle will be a record in surface area and will present an equal balance between cereals and oilseeds, given the greater crop rotation that has been applied in the South American country.
However, lower average yields will affect the total grain harvest, which, in any case, “will be high in historical terms,” said the consultant.
The lower production will occur as a result of an unfavorable climate in some areas planted with soybeans, corn, sunflower, wheat and barley.
The agricultural sector will also be affected by the recent increase in grain export rights included in the emergency law promoted by the new Government of Alberto Fernández.
According to IES, this increase, combined with volatile international prices, will leave “tighter gross margins” for rural producers than the previous campaign.
Months ago, anticipating a possible rise in export duties – called retentions in Argentina -, farmers increased their sales.
“The imminent increase in withholdings produced a sharp increase in the sale and liquidation of grain for export, which reduced the accumulated stocks, and also verified a record of anticipated grain sales of the future 2019-2020 harvest, since that the producer seeks to cover itself from the risks of the greatest future tax pressure, “the report noted.
In the first 11 months of 2019, Argentina completed grain exports of 93.1 million tons, with an interannual increase of 37.3%.
In values, the exports of the period totaled 25,678 million dollars, with an interannual increase of 21%.