Jul 15, 2022
Wheat Acreage in Argentina and Brazil Moving Opposite Directions
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Estimates of Argentina's 2022/23 wheat acreage and production continue to decline. The latest reduction came from the Rosario Grain Exchange which lowered their estimate of the 2022/23 wheat acreage to 5.9 million hectares (14.5 million acres) compared to their prior estimate of 6.2 million hectares (15.3 million acres). They also lowered their estimate of Argentina's 2022/23 wheat production to 17.7 million tons compared to their prior estimate of 18.5 million tons.
The Buenos Aires Grain Exchange has lowered their 2022/23 wheat acreage four times since planting began. They are currently estimating the wheat acreage at 6.2 million hectares (15.3 million acres).
Dry weather in parts of Argentina discouraged farmers from planting their wheat and they are now running out of time to plant. Wheat planting started in May and the planting window is now essentially closed. Instead of planting their wheat after the ideal planting window had closed, some farmers opted to skip planting wheat so they could plant their soybeans as early as possible starting in October.
In contrast, farmers in neighboring Brazil are expected to plant the most wheat in 32 years according to Conab. The 2022/23 Brazilian wheat acreage is expected to be 2.9 million hectares (7.1 million acres), which the most in 32 years only surpassed by the 3.28 million hectares planted in 1990 (8.1 million acres). Brazilian wheat production in 2022/23 is expected to set a record at 9 million tons. Despite potential record production, Brazil is still expected to import 6.5 million tons of wheat with most coming from Argentina.