AIRLINK 193.50 Decreased By ▼ -1.51 (-0.77%)
BOP 9.64 Decreased By ▼ -0.13 (-1.33%)
CNERGY 7.53 Increased By ▲ 0.17 (2.31%)
FCCL 37.70 Decreased By ▼ -1.07 (-2.76%)
FFL 15.60 Increased By ▲ 0.01 (0.06%)
FLYNG 25.59 Increased By ▲ 0.18 (0.71%)
HUBC 127.07 Decreased By ▼ -1.55 (-1.21%)
HUMNL 13.50 Decreased By ▼ -0.31 (-2.24%)
KEL 4.58 Increased By ▲ 0.09 (2%)
KOSM 6.10 Decreased By ▼ -0.20 (-3.17%)
MLCF 43.96 Decreased By ▼ -0.83 (-1.85%)
OGDC 203.24 Decreased By ▼ -0.36 (-0.18%)
PACE 6.40 Decreased By ▼ -0.02 (-0.31%)
PAEL 40.98 Decreased By ▼ -0.15 (-0.36%)
PIAHCLA 17.49 Increased By ▲ 0.77 (4.61%)
PIBTL 7.66 Decreased By ▼ -0.02 (-0.26%)
POWER 9.08 Increased By ▲ 0.04 (0.44%)
PPL 174.25 Increased By ▲ 0.34 (0.2%)
PRL 38.07 Decreased By ▼ -1.01 (-2.58%)
PTC 24.07 Decreased By ▼ -0.97 (-3.87%)
SEARL 107.24 Decreased By ▼ -1.82 (-1.67%)
SILK 0.97 Decreased By ▼ -0.02 (-2.02%)
SSGC 36.40 Decreased By ▼ -1.74 (-4.56%)
SYM 19.04 Decreased By ▼ -0.45 (-2.31%)
TELE 8.24 Decreased By ▼ -0.12 (-1.44%)
TPLP 11.78 Decreased By ▼ -0.35 (-2.89%)
TRG 64.88 Increased By ▲ 0.09 (0.14%)
WAVESAPP 11.63 Increased By ▲ 1.06 (10.03%)
WTL 1.68 Decreased By ▼ -0.01 (-0.59%)
YOUW 3.85 Decreased By ▼ -0.02 (-0.52%)
BR100 11,765 Decreased By -123.2 (-1.04%)
BR30 34,986 Decreased By -233.6 (-0.66%)
KSE100 111,487 Decreased By -543 (-0.48%)
KSE30 34,934 Decreased By -201.5 (-0.57%)

Rains in Argentina have not been strong enough to help wheat fields after weeks of dryness, but showers in the eastern farm belt have helped speed corn planting, the Buenos Aires Grains Exchange said on Thursday.

Potential wheat yield losses are estimated at up to 40% in southern Cordoba, eastern La Pampa and western Buenos Aires province, the exchange said in a report. Those areas got less that 20 mm (0.8 inch) of rain on average during the week. "The situation could worsen if dryness continues," it said.

The exchange also published a weather forecast showing no more than 25 millimeters of rain expected in the driest wheat-growing areas over the week ahead. Eastern Argentina has been moist, meanwhile, helping corn sowing advance 4.5 percentage points over recent days to cover 28.7% of the expected planting area nationwide, the exchange said. It expects a 2019/20 corn harvest of 50 million tonnes. Last week, the exchange cut its 2019/20 wheat forecast to 19.8 million tonnes from a previous 21 million tonnes.

The Rosario grains exchange last week chopped its 2019/20 corn crop forecast to 47.5 million tonnes from a previously expected 50 million tonnes, citing dryness and political uncertainty ahead of the Oct. 27 presidential election.

Business-friendly President Mauricio Macri, who won office in 2015 with strong support from farmers, is expected to lose his bid for a second term. Front-runner Alberto Fernandez favours more government intervention in the economy and is expected by industry leaders to increase grains export taxes.

More taxes would put downward pressure on Argentine grains prices. As a hedge against that uncertainty, farmers are shifting away from corn and toward safe-haven soyabeans, which are cheaper to grow and require less upfront investment.

Copyright Reuters, 2019

Comments

Comments are closed.