BCR cuts 2021-22 Argentina corn output forecast to 48 mil mt amid drought

Rosario Grains Exchange, known as BCR, has cut Argentina's 2021-22 corn production forecast by 8 million mt to 48 million mt due to the prevailing drought.

Argentina, one of the top exporters of corn, had produced 52 million mt of corn In 2020-21, according to a BCR report released Jan. 13.

"Almost 30 days have gone by without significant rainfall to help the crop. Corn continues to suffer due to the two heat strokes that followed one another with barely a week of respite in between," the BCR said in its report.

The area of 2021-22 corn crop under excellent or good condition in Argentina fell to 23% Jan. 12 from 40% the week before, the Buenos Aires Grain Exchange, known as BAGE, said in a report. Almost 36% of the corn crop in the country is in poor or very poor condition.

This year more area was planted, but there will be less corn, the BCR said. There are still some areas that are yet to be planted.

Corn planting in Argentina was complete in 86.4% of the total estimated area of 7.3 million hectares as of Jan. 12, compared with 90.9% around the same period in 2020-21, BAGE said in the report.

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.

First corn production in southern Brazil is also seen to be lower than the initial estimates in 2021-22 due to drought.

Corn supply in South America in the near term is likely to tighten since Brazil, another major exporter, is still emerging from the severe crop losses suffered in the previous year.