Lack of adequate rain in Argentina raises fears of yield losses in corn crop: BAGE

Corn crops in Argentina are at risk of yield losses if more rain was not received in January, the Buenos Aires Grain Exchange said in a report.

The area of 2021-22 corn crop under excellent or good condition fell to 40% Jan. 5 from 58% the week before, BAGE data showed.

Moisture conditions were favorable or optimum for only 57.5% of the early corn crop in Argentina, it added.

"This scenario could affect the potential yield of the crop in the provinces of Santa Fe, Entre Rios and Cordoba, where the cereal passes the period of yield definition. Rainfall is necessary during the month of January to mitigate the water stress and complete the incorporation of the corn batches not yet sown," BAGE said in the report.

The irregular rainfall has also affected corn planting, with sowing complete in 77.3% of the total estimated area of 7.3 million hectares as of Jan. 5 as compared with 85.3% around the same period in 2020-21.

The near-term weather forecast for Argentina's corn and soybean crops was not favorable.

"With dry weather over the next 10 days, subsoil moisture weighted by soybean production is expected to decline further and by day 10 is projected to be lower than any date in any growing season dating back to at least 2008-09, leading to significant stress on corn and soybeans," Maxar said in its daily weather report Jan. 6.

Argentina's early corn is usually planted in September-October and harvested in April-May, while the late corn crop is planted in December-January and harvested in June-July.

Argentina is among the world's top three corn exporters.