Argy Wheat Crop Already Under Threat

Argentina's 2009 wheat crop is already under threat before it's even in the ground. With plantings forecast to drop by around 20% due to a combination of drought, lack of credit and farmer dissatisfaction with government tinkering 2008 production of just 8.3 MMT could be lowered further, a far cry from the 16 MMT produced in 2007.

Considering how dry it is, it will take copious rainfall to properly recharge soil profiles, say StormX. Rainfall deficits up to 300 millimeters (12 inches) built up from January through March in Buenos Aires, the leading wheat province that grows nearly two-thirds of the national wheat crop.



The Buenos Aires Grain Exchange said last week that insufficient rainfall across Argentina’s Pampas over the past month has led to drought conditions across much of the farm belt, which may have a serious effect on wheat planting, add StormX. Conditions are so dry in the southern areas that wind is carrying away topsoil, “a true ecological disaster.” The mid April vegetation index verified extreme drought conditions in Buenos Aires and La Pampa.



Compare that map to one of where most of the country's wheat is grown (major areas red, secondary green) and you will see what I mean: