Argentina's Entre Rios braced for 'driest crop in 90 years'

The province of Entre Rios in Argentina is facing its driest crop in 90 years, with production of corn and soybean falling 38% and 54% respectively, Pablo Fontanini of the Bolsa de Cereales de Entre Rios, told Agricensus.

Fewer than 200 mm of rain has fallen on some 2.1 million hectares across the province from November through February, around 32% of the province's productive agricultural land, Fontanini said.

Entre Rios is Argentina’s fourth largest grain producer behind Buenos Aires, Cordoba and Santa Fe provinces, and accounts for up to 8% of the country’s total grain production.

Fontanini also said that production during the 2017/2018 crop has also been hit by heat stress, with average temperatures exceeding 35 C (95 F) for 34 days, compared to 13 days in the same period last year.

Water stress slashes production

Water stress in the soybean crop is likely to see production decline by 54% versus the 2016/17 season, amounting to a loss of around 1.82 million mt of soybeans and cutting $545 million from the region's economy. 

For corn, water stress will shave $120 million from the region's economy as production falls 38% with total production in the province reaching 1.81 million mt, down 680,000 mt, Fontanini said.

Argentina’s overall grain production this year is set to fall 17% year-on-year mainly on the drought affecting the country’s most productive regions, according to a study by the Rural Society.

Total grain production will reach 104 million mt this season compared to 125 million mt in 2016/2017, according to the agency.

The study also forecasts a 21% fall in grain exports resulting in a loss of $4.4 billion to Argentina's treasury. 

Last week the USDA slashed 7 million off its soybean production estimate taking it to 47 million mt and 3 million off their corn production estimate to 36 million mt.