Wheat planting begins, with prospects for new record crop

After an excellent season, with production exceeding 19 million tonnes and committed exports of 8.7 million tonnes, the field will begin this week to start sowing wheat, which will be available in mid-November and will have an impact. important. in the incomes of the beginning of 2020.

The outlook for the wheat cycle is more than optimistic. The climate that has occurred since April, with rains that have improved soil profiles, as well as a crop-friendly winter forecast, and increased investment in farmer technology, suggest that wheat will occupy a surface in abundance. about 6.8 million hectares, the highest record in years.

This larger area and the larger technology investments would have an impact on final production of between 20.5 and 21 million tonnes, according to estimates made before the beginning of the cycle from the Buenos Aires Grain Exchange. Aires and the Rosario Stock Exchange (BCR).

If this volume is specified, it will be a new wheat production record and will displace 19.5 million people on the 2018/20 campaign.

The bet for the new wheat was defined in spite of the political uncertainties linked to the presidential elections and the fact that the main world players in cereal production plan to recover wheat production, after a year that has injured a number of countries, mainly in Russia, Ukraine and Australia.

This country is even badyzing these days the possibility of allowing the importation of wheat, a fact that has not been produced since 2006, after two seasons during which the drought has significantly reduced the grain harvest. The absence of Australian wheat has resulted in the country's career as a supplier to the Southeast Asian markets, many of which have turned to Argentine grain to meet their needs.

This demand led to a surge in local wheat exports in the first quarter, resulting in a sharp increase in producer value. Exporters bought more than 11 million tonnes of "old" wheat and shipped nearly 9 million tonnes.

With what is estimated, what remains of the marketing campaign (until next November) will coexist with a reduced supply of cereals, but with a small volume of shipments that will reduce the pressure on the local values ​​of wheat.

The demand needs to supply the local flour industry led to the fact that last week, the state of the House's wheat exceeded 190 USD per ton, an unusual value for that period.

Meanwhile, for the wheat that is beginning to be sown these days, successful companies have broken records.

Exporters have produced just over one million tonnes of 2019/20 wheat and have already recorded sales abroad of 815,000 tonnes. "These are historical archives for this period of the year," commented an article by Desire Sigaudo and Emilce Terré, badysts of the Rosario Stock Exchange (BCR).