Argentina's Rosario exchange gives upbeat 2023/34 soy, corn forecasts

Ships sail on the Parana River, in Rosario, Santa Fe province, Argentina 9 March 2023.

Argentina's Rosario grains exchange on Wednesday issued an upbeat forecast for the South American country's 2023/24 soybean and corn harvests.

The exchange predicted a 48 million metric ton harvest of soybeans, up from 20 million tons in the last season, while the corn harvest could stand at 56 million tons, up from 34 million tons expected for 2022/23.

The South American country is one of the world's largest exporters of processed soybeans as well as a major corn and wheat supplier.

Argentine farmers will start planting soybeans in October, and the Rosario exchange expects the planting area to surpass the previous season's by 6.3 per cent with some 17 million hectares.

The corn planting area, however, should remain the same size as that of the 2022/23 season due to higher farming costs and uncertainty around the availability of fertilizers, the exchange said.

Many farmers are nor in a position to invest in the more expensive corn crops, it added, as they look to recover from a devastating drought that hit Argentina's agricultural heartlands last season. Corn planting is set to start in September.

The 2022/2023 cycle a "bad season" for soybeans, the exchange said last month, as the harvest came in 59 per cent below initial forecasts as crops suffered what has been called the worst drought in 60 years.