Argentina: Record harvest of 140 M tons is expected in the 2018/19 season

By Aldo Leporati, Partner and Managing Director at Porter Novelli Argentina

The agricultural harvest of the 2018/19 season would reach 140 million tons, with a new historical record, as a result of the strong advance of corn and soybean production, given that operators expect that wheat will grow little since the drought does not This crop affected the last cycle. This was indicated by the first estimate of the Agricultural Sector prepared by IES Consultores, which indicated that "good weather forecasts for the current cycle and greater profitability, in line with the devaluation of the peso, suggest a record threshing and an increase in investments of the sector ".

The agricultural campaign 2018/19 is under way throughout the country, at a stage that combines the beginning in October of the harvesting of the fine harvest (wheat and barley), and the sowing of the coarse harvest (corn and soybean as main crops). crops). The contribution of the sector in the economy of 2019 would be 1.6% of the national GDP. Exports are expected to grow $ 5.2 billion and collection $ 2.86 billion from the previous year.

Argentina's 2018-19 corn harvest is expected to reach a record 43 million tonnes, up from 31.7 M tonnes last year, the Buenos Aires Grains Exchange said. They also expects record wheat harvest this season at 19.7 million tonnes, more than the 17.8 million tonnes last year. Argentina's soybean crop is seen at 53 million tonnes in 2018-19, up from 35.1 million tonnes last season.

Worldwide, "the projections for the 2018/19 campaign, according to the September report of the United States Department of Agriculture (USDA), show lower production volumes for wheat (climatic problems in major producers) and a increase in the global harvest of corn and soybeans, although in the case of corn, final stocks will fall due to higher consumption, which left a firmer situation for the prices of cereals (wheat and corn). " On the other hand, they warned that "volatility in soybean prices will continue due to the trade war between China and the United States."