The latest Crop Condition & Development Stages report from the Buenos Aires Grains Exchange (BAGE) shows that as at 4th December, 46% of the Argentine wheat crop was harvested , compared to 44% at the same time last year and a five year average of 38%.
The relatively good harvest progress resulted in the BAGE leaving its Argentine wheat estimate unchanged from its previous estimate, at 18.5Mt, as the exchange previously had to reduce its expectations (18.8Mt) due to the impact of hot and dry weather on the crop development. Mintec’s Argentine wheat price is down 9%, y-o-y (as at 6th December), in line with this year’s harvest progress, although the price is up by 1%, m-o-m due to previous concerns for the crop.
The Argentine wheat crop is expected to bring some relief to the tight Australian wheat supplies, following the drought in Australia, thus, making the progress of the Argentine wheat harvest vital to the global market, particularly to Asia.
Recent rains in Argentina have brought some relief to the maize crop, with 54.7% of the crop now seen in good or excellent condition as at 4th December, compared to 50% at the same time last year. Mintec’s Argentine maize price has increased by 3%, m-o-m, following the previous dry weather concerns.