Argentinian soybean 2021-22 crop conditions worsen on dry weather

Argentina's soybean crop conditions for the 2021-22 crop year (November-October) have worsened significantly in the last few weeks as dry weather continued to ravage planted crops across the country, according to a report released by the Buenos Aires Grains Exchange Jan. 13, which is likely to fan supply concerns and support domestic prices.

Of the planted soy crops, 31% were in good-to-excellent condition through Jan. 12, down 17 percentage points week on week and 56 points lower since mid-December, data from the BAGE report showed. Nevertheless, the crop conditions are still better than last year when about 14% was rated good-to-excellent crop, according to the report.

Soybean planting in the country has also been progressing sluggishly as farmers are waiting for rain.

Of the total projected acreage of 16.4 million hectares for 2021-22, Argentinian soybean farmers had managed to plant 92.5% of the area as of Jan. 12, down 6 percentage points year on year, the BAGE said.

The lack of surface moisture delays the advance of planting across the country, the report said. In the extreme north, the sowing window extends until the end of this month, while soybean planting in south of Buenos Aires and La Pampa depends on rains during the next 10 days, the BAGE said.

Rain in the coming days will be crucial as the soybean crop requires ample moisture during the development stage.

Argentina, the world's third largest soybean supplier, is forecast to produce 46.5 million mt of beans in 2021-22, up 0.5 million mt on the year, according to the US Department of Agriculture's latest estimates.

If the dry conditions persist in January, a substantial cut in the output forecast could be in the offing.