BUENOS AIRES: Argentina’s Buenos Aires grains exchange on Thursday lifted its production forecasts for 2023/24 soy and corn to 52.5 million metric tons and 56.5 million tons respectively as the country heads for a bumper crop helped by improved rains this season.

The exchange had previously forecast a soybean output of 52 million tons and a corn harvest of 55 million tons, citing improved soil moisture. It also nudged up its corn planting estimate to 7.2 million hectares (17.8 million acres) from a prior 7.1 million hectares (17,5 million acres).

However, the exchange noted that in the case of soybeans, future rainfall would play a crucial role and if these rains do not materialize, this “could have an impact on our current projection.”

The wheat harvest, it added, had ended with 15.1 million tons of the crop, in line with its forecasts and landing 25% higher than last year’s drought-hit cycle.

This, however, remained some 22% below the five-year average. The South American country is one of the world’s top suppliers of processed soybeans, as well as a major corn and wheat exporter.

The new government of President Javier Milei is hoping to generate revenue from the key sector by hiking export taxes on key grains, as the country grapples with depleted reserves and sky-high inflation.