(Photo: aerial image of farms in the North of Santa Fe Province, Credit BCR)

Buenos Aires, January 16th. After the severe drougth suffered during 2017/18 season, now it’s time to floods. Inusual rains during the current January month are damaging crops and livestock in the Northeast of the country.

The Rosario Grain Exchange (BCR) have cut for second time, this week, the soybean area estimation, reducing it to 17.6 million hectares from initial 17.9 million. The BCR latest report estresses that 2.2 million hectares of soybean are suffering the excesives rains, but 500,000 of them are seriously threatened.

The North of the Sante Fe province and Chaco province received between 200 and 400 milimeters of rains in the last 30 days; in some cases these rains represent the total rains along a normal year.

While, in December, the Ag-Industry secretariat estimated that soybean planted area in the current season could be reaching 17.5 million hectares, from 17.2 million in the last season. The next forecast report will release next week and it hopes that official analyst cut the area due to the floods. A cut of 300,000 hectares could represent near one million tons of production loss.

Previously to the floods, it was estimated that about 500,000 hectares of soybean were planted in Chaco Province, 900,000 hectares in Santiago del Estero Province, and about one million hectares in the North and West of the Santa Fe Province. These are the most risk zones.

The question is how much production will cut this floods. Facing an electoral year, the government expects a recovery of the national harvest, that brings dollars to a weak economy. As farming contributes with 2/3 of the total exports, a good harvest results a crucial issue to have chances to reach a second mandate.