The area of wheat for the 2020/21 cycle in Argentina would be 6.7 million hectares, from 6.6 million the previous season, due to favorable climatic and economic prospects for the crop, the Cereal Stock Exchange of Tuesday said. Buenos Aires (BCBA) in its pre-campaign report for the cereal.
Argentina is one of the main world wheat exporters in the world and the production of 18.8 million tons of the cereal reached in the 2019/20 cycle was the second highest grain harvest for the South American country, according to the entity.
“The perspectives (of precipitations) move close to the historical averages, posing a scenario in which a correct implantation would be achieved followed by an adequate rainy season and favorable temperatures for the development of the crop,” said the BCBA in its report on pre-campaign.
Wheat is the third most important crop in Argentina, behind soybeans and corn. Farmers are currently completing preparations for the start of planting of the cereal, which would begin in the coming weeks.
Regarding the favorable economic outlook for grain, the Stock Market said that since the start of the crisis caused by the coronavirus pandemic, wheat is the crop that has registered the most moderate drop in its international prices, with improvements in last days.
Unlike corn and soybeans, “the relative independence of what happens in the energy markets, because wheat is a crop that is not used on a large scale in the production of biofuels,” helped to sustain the price of grain. , explained the BCBA.
Possible export barriers in wheat-producing countries in the midst of the COVOD-19 crisis also favor the value of the cereal, while a drop in local prices of production inputs would also benefit the implantation of the grain, the entity explained.