This week, how droughts in Argentina could disrupt Brazil’s wheat supply. The presidential election in Bolivia.
Poor wheat harvest in Argentina spells trouble for Brazil
Extreme climate conditions are set to cause wheat production to crash in Argentina — especially in the Nucleo region, the largest area of production in the country. A new report, published by the Rosario Commodities Stock Exchange, shows that the upcoming harvest may amount to 4.4 million tons, significantly lower than early estimates of 7 million tons.
What happened in Argentina? Droughts have been affecting the area for six months now, reducing planted area by 10 percent to 1.6 million hectares. Furthermore, many crops were hit by frosts, which lowered grain quality. In hardest-hit areas in Argentina, Santa Fé and Córdoba, yields are estimated at 2.34 and 2.4 tons per hectare, respectively.
- A year ago, those yields were 1.6 and 1.4 tons larger, respectively.
Rainfall. Meteorologists expect moderate to heavy rains in the region between October 19 and 21, though it may not be enough to recover soil moisture in places such as Córdoda.
Why it matters. Wheat is Brazil’s biggest agricultural import, and 80 percent of it comes from Argentina.
- Brazil’s National Supply...