La Niña makes Argentina suffer
Soybean harvest collapses due to severe drought
Argentina’s soybean harvest collapses as a result of the worst drought in 60 years. The important grain exchange in Rosario recently corrected its forecast for the 2022/2023 harvest season by 25 percent from 49 million tons to 37 million tons.
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Argentina’s soybean harvest collapses as a result of the worst drought in 60 years. The important grain exchange in Rosario recently corrected its forecast for the 2022/2023 harvest season by 25 percent from 49 million tons to 37 million tons. (archive image)
That’s a 13 percent lower harvest than last year and the third worst in the past 15 years. Argentina is currently suffering from the La Niña weather phenomenon, which leads to significantly less precipitation.
Argentina is the third largest producer of soy after the USA and Brazil. The South American country is also the world’s largest exporter of soybean meal and soybean oil. For the agricultural country Argentina, the crop failures mean heavy losses.
The grain exchange in Rosario puts the shortfall in revenue at around eight billion US dollars, which corresponds to around 18 percent of foreign exchange earnings from agricultural exports. The agricultural sector is one of the most important foreign exchange earners for the economically battered country. (SDA)