Argentina: Grain and Feed Update
Post estimates wheat production for 2015/16 at 10.8 million metric tons (MMT), 300,000 tons higher than USDA. Although yields were higher than normal, the protein content of a large share of the production is low. Exports are forecast at 6.5 MMT, 500,000 tons higher than USDA primarily due to the production increase. Barley production for 2015/16 is estimated at 4.3 MMT, significantly higher than USDA’s 3.4 MMT as result of excellent weather during the entire cycle which produced almost record yields. Larger production is expected to increase exports at 2.4 MMT (USDA at 2.0 MMT) and increase ending stocks. Post projects 2015/16 corn production at 24 MMT, 1.6 MMT lower than USDA, primarily due to a smaller harvested area. Crop condition was very good so far, but lately the lack of rains and high temperatures are affecting the crop condition in some areas. Post projects corn exports at 14.2 MMT, 1.8 MMT lower than the official number as Post projects a smaller corn supply. Sorghum exports for 2015/16 are forecast at 1.0 MMT, 100,000 tons lower than USDA. Local traders indicate that the demand is slow. Rice production for 2015/16 is expected at 1.262 MMT (rough basis) due to excess rain which has made farmers lose some 9,000 hectares planted.
